A stock has an expected return of $17\mathrm{.}5\%$ and a beta of $1\mathrm{.}65.$ Another asset which

has low risk with a beta of $\mathrm{.}25$ is earning $3\mathrm{.}25\%$

a$)$ What is the expected return on a portfolio that is comprised of one$-$half the

higher risk stock and one$-$half the lower risk asset?

b$)$ Calculate the weights of each of these if they are the only $2$ holdings in a

portfolio which has a beta of $1\mathrm{.}00.$

c$)$ If the portfolio of these two holdings earned $10\%,$ what would be the beta of

the portfolio?

Answer Place only your final answer in the box.

Show your work here $($mandatory$)$: