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I always get the weight of risk free wrong, I tried .95 and -.95 but I still get wrong A stock has a beta of

image text in transcribed I always get the weight of risk free wrong, I tried .95 and -.95 but I still get wrong
A stock has a beta of 1.27 and an expected return of 12.5 percent. A risk-free asset currently eams 4.15 percent Required: (a) What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g- 32.16)) expected return | 1% 8 325 (b) If a portfolio of the two assets has a beta of 087, what are the portfolio weights? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).) Weight of the stock Weight of the risk-free asset 0.685 0.315 If a portfolio of the two assets has an expected return of 11.7 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16)) (c) Beta 1.148 (d) If a portfolio of the two assets has a beta of 2.47, what are the portfolio weights? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).) 1.95 Weight of the stock Weight of the risk-free asset HintsReferences eBook&Resources

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