Question
Asset W has an expected return of 12.2 percent and a beta of 2.0. If the risk-free rate is 4.1 percent, complete the following table
Asset W has an expected return of 12.2 percent and a beta of 2.0. If the risk-free rate is 4.1 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Do not round intermediate calculations and enter your expected return answers as a percent rounded to 2 decimal places, e.g., 32.16. Round your beta answers to 3 decimal places, e.g., 32.161.)
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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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