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A stock has a beta of .8 and an expected return of 18 percent. A risk-free asset currently earns 4.9 percent. a. What is the

A stock has a beta of .8 and an expected return of 18 percent. A risk-free asset currently earns 4.9 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. Omit the "%" sign in your response.)

Expected return %

b.

If a portfolio of the two assets has a beta of .47, what are the portfolio weights? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Portfolio Weight
xS %
xrf %

c.

If a portfolio of the two assets has an expected return of 10.25 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

Beta

d.

If a portfolio of the two assets has a beta of 1.24, what are the portfolio weights? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Porfolio Weight
xS %
xrf %

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