Question
Asset W has an expected return of 10.6 percent and a beta of 1.4. If the risk-free rate is 3.6 percent, complete the following table
Asset W has an expected return of 10.6 percent and a beta of 1.4. If the risk-free rate is 3.6 percent, complete the following table for portfolios of Asset W and a risk-free asset.(Do not round intermediate calculations. Enter your expected return answers as a percent roundedto 2 decimal places, e.g., 32.16. Round your beta answers to 3 decimal places, e.g., 32.161.)
Percentage of Portfolio
in Asset WPortfolio
Expected ReturnPortfolio
Beta0%%25%50%75%100%125%150%
If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Slope of the line%
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