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EC Suppose Intel stock has a beta of 1.69, whereas Boeing stock has a beta of 0.92. If the risk-free Interest rate is 3.7% and
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Suppose Intel stock has a beta of 1.69, whereas Boeing stock has a beta of 0.92. If the risk-free Interest rate is 3.7% and the expected return of the market portfolio is 11.9%, according to the CAPM a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 60% Intel stock and 40% Boeing stock? d. What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock? (There are two ways to solve this.) Step by Step Solution
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