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A stock has a beta of 1.80 and an expected return of 13 percent. A risk-free asset currently earns 3.2 percent. a. What is the
A stock has a beta of 1.80 and an expected return of 13 percent. A risk-free asset currently earns 3.2 percent.
a. What is the expected return on a portfolio that is equally invested in the two assets?
b. If a portfolio of the two assets has a beta of .99, what are the portfolio weights?
c. If a portfolio of the two assets has an expected return of 9%, what is its beta?
d. If a portfolio of the two assets has a beta of 3.60, what are the portfolio weights?
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