Beta= 1.13

E(r)= 12.1%

risk-free= 3.6%

a. What is E(r) on portfolio that is equally invested in the 2 assets?

b. If a portfolio of the 2 assets has a Beta of .5 what are the portfolio weights?

c. If a portfolio of the 2 assets has an E(r) of 10% what is its Beta

d. If a portfolio of the 2 assets has a Beta of 2.26, what are the portfolio weights? Explain how you interpret the weights for the 2 assets in this case.