A stock has a beta of 1.60 and an expected return of 10 percent. A risk-free asset currently earns 2.4 percent.

a.	What is the expected return on a portfolio that is equally invested in the two assets? (Round your answer to 2 decimal places. (e.g., 32.16))

Expected return

%

b.	If a portfolio of the two assets has a beta of 0.88, what are the portfolio weights? (Round your answer to 4 decimal places. (e.g., 32.1616))

Weight of stock
Risk-free weight

c.	If a portfolio of the two assets has an expected return of 9 percent, what is its beta? (Do not round intermediate calculations and round your answer to 3 decimal places. (e.g., 32.161))

Beta

d.	If a portfolio of the two assets has a beta of 3.20, what are the portfolio weights? (Negative amount should be indicated by a minus sign.)

Weight of stock
Risk-free weight