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A stock has a beta of .8 and an expected return of 12 percent. A risk-free asset currently earns 4.3 percent. a. What is the

A stock has a beta of .8 and an expected return of 12 percent. A risk-free asset currently earns 4.3 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 .71, what are the portfolio weights?

c. If a portfolio of the two assets has an expected return of 8.75 percent, what is its beta?

d. If a portfolio of the two assets has a beta of 1.04, what are the portfolio weights?

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