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Asset W has an expected return of 8.8 percent and a beta of .90. If the risk-free rate is 2.6 percent, complete the following table

Asset W has an expected return of 8.8 percent and a beta of .90. If the risk-free rate is 2.6 percent, complete the following table for portfolios of Asset W and a risk-free asset. What is the slope of the line that results?

Input area:

Stock E(R) 8.80%
Stock beta 0.90
Risk-free return 2.60%

(Use cells A6 to B8 from the given information to complete this question.)

Output area:

Weight of W Weight of risk-free Portfolio E(R) Portfolio beta
0% 100%
25% 75%
50% 50%
75% 25%
100% 0%
125% -25%
150% -50%
Slope of SML

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