Question
Asset W has an expected return of 13.8 percent and a beta of 1.4. If the risk-free rate is 5.4 percent, complete the following table
Asset W has an expected return of 13.8 percent and a beta of 1.4. If the risk-free rate is 5.4 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 rounded to 2 decimal places, e.g., 32.16. Round your 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% |
B. If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results?
Slope of the line ____%
This is an exact copy of the question from connect. Question has been asked and answered with other values.
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