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A stock has a beta of 1.7 and an expected return of 12 percent. A risk-free asset currently earns 2.8 percent. a. What is the

A stock has a beta of 1.7 and an expected return of 12 percent. A risk-free asset currently earns 2.8 percent.

a.

What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Expected return _________________ % ?

b.

If a portfolio of the two assets has a beta of 1.02, what are the portfolio weights? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Weight of stock__________?
Risk-free weight__________?

c.

If a portfolio of the two assets has an expected return of 10 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 3.4, what are the portfolio weights? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.)

Weight of stock_______?
Risk-free weight_______?

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