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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.) 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.) 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.)
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