An American Treasury Bond offers a 5% return A common stock has a beta of 0.70 and an expected return of 15%

A) What is the expected return on a portfolio made up of equal investments in these two assets?

B) If a portfolio composed of these two assets has a return of 15%, what is its beta?

C) If a portfolio computed by these two assets has a beta of 1.20, what are the weighting factors? How is the weighting factor interpreted for the risk-free asset?