Question
Can you tell me what the weight is of my risk free asset for d? A stock has a beta of 1.24 and an expected
Can you tell me what the weight is of my risk free asset for d?
A stock has a beta of 1.24 and an expected return of 12.2 percent. A risk-free asset currently earns 4 percent.
a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. If a portfolio of the two assets has a beta of .84, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)
c. If a portfolio of the two assets has an expected return of 11.4 percent, what is its beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d. If a portfolio of the two assets has a beta of 2.44, what are the portfolio weights? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)
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