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Check my work 5 A stock has a beta of 1.22 and an expected return of 12 percent. A risk-free asset currently earns 3.9 percent.
Check my work 5 A stock has a beta of 1.22 and an expected return of 12 percent. A risk-free asset currently earns 3.9 percent. 30 points eBook a. What is the expected return on 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.82, 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 11.2 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 2.42, 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.) Hint Ask a. 7.95% Print b. Expected return Weight of stock Weight of risk-free asset Beta References C. d. Weight of stock Weight of risk-free
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