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Asset W has an expected return of 11.8 percent and a beta of 1.20. If the risk-free rate is 3.4 percent, complete the following table
Asset W has an expected return of 11.8 percent and a beta of 1.20. If the risk-free rate is 3.4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Round your expected return answers to 2 decimal places. (e.g., 32.16) and beta answers to 3 decimal places. (e.g., 32.161)) |
Percentage of Portfolio in Asset W | Portfolio Expected Return | Portfolio Beta | |||
0 | % | % | |||
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? (Round your answer to 2 decimal places. (e.g., 32.1616)) |
Slope of the line | % |
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