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Mediaset Spa has a beta of 1.15 and an expected return of 13%. The Italian risk-free is currently earning 2.1%. A. If a portfolio of

Mediaset Spa has a beta of 1.15 and an expected return of 13%. The Italian risk-free is currently earning 2.1%. A. If a portfolio of the two assets has a beta of 1.1, what are the portfolio weights? B. If a portfolio of two assets has a required return of 15 percent, what is its market risk premium? C. If you construct a different combination of the portfolio with the previous two assets that result in a 1.7 Beta, what are the portfolio weights? How do you interpret the weights for the two assets in this case?

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