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a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your

a.

What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b.

If a portfolio of the two assets has a beta of .95, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)

c.

If a portfolio of the two assets has an expected return of 7 percent, what is its beta? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

d.

If a portfolio of the two assets has a beta of 3.80, what are the portfolio weights? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)

answer B1 is wrong

a. Expected return 9.30 %
b. Weight of stock 0.9500
b. Risk-free weight 0.5000
c. Beta 0.570
d. Weight of stock 2
d. Risk-free weight -1

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