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?

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

Figure the Portfolio E(R), and Portfolio beta, and Slope of SML using excel

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