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. Table shows: Percentage of Portfolio Portfolio Portfolio

in Asset W Expected Return Beta

0% 5.40 +/- 1% 0

25% 7.50 +/- 1% .350 +/- 1%

50% 9.60 +/- 1% .700 +/- 1%

75 11.70 +/- 1% 1.050 +/- 1%

100 13.80 +/- 1% 1.400 +/- 1%

125 15.90 +/- 1% 1.750 +/- 1%

150 18.00 +/- 1% 2,100 +/- 1%

I understand where the Portfolio Expected Return for 0% is 5.40 and the beta is 0, and that the Portfolio Expected Return for 100 is 13.80 and beta is 1.400, but I do not understand how the calculated the Portfolio Expected Return and Portfolio beta values for 25%, 50%, 75%, 125% and 150%: For example: How do you calculate that at 25% in Asset W reflects a Portfolio expected return of 7.50 +/- 1% with beta of .350 +- 1%