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Different investor weights. Two risky portfolios exist for investing one is a bond portfolio with a beta of 0.5 and an expected return of 6.1%,
Different investor weights. Two risky portfolios exist for investing one is a bond portfolio with a beta of 0.5 and an expected return of 6.1%, and the other is an equity portfolio with a beta of 1.3 and an expected return of 15.1%. If these portfolios are the only two available assets for investing, what combination of these two assets will give the following investors their desired level of expected return? What is the beta of each investor's combined bond and equity portfolio? a. Bart desired expected return 14% b. Lisa: desired expected return 12% C. Maggie: desired expected return 10% a. The combination of these two assets that will give Bart an expected return of 14% is 12.22 % in bonds and 87.78 % in stocks. (Round both answers to two decimal places.) With this combination of the bond and equity portfolio, Bart will have a portfolio beta of (Round to one decimal place.)
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