Question
A stock has a beta of 1.33 and an expected return of 13.1 percent. A risk-free asset currently earns 4.45 percent. What is the expected
A stock has a beta of 1.33 and an expected return of 13.1 percent. A risk-free asset currently earns 4.45 percent.
What is the expected return on a portfolio that is equally invested in the two assets? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
If a portfolio of the two assets has a beta of .93, what are the portfolio weights? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.
If a portfolio of the two assets has an expected return of 12.3 percent, what is its beta? Note: Do not round intermediate calculations
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