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need part c and d A stock has a beta of 1.19 and an expected return of 12.4 percent. A risk-free asset currently earns 2.7
need part c and d
A stock has a beta of 1.19 and an expected return of 12.4 percent. A risk-free asset currently earns 2.7 percent. a. What is the expected return on a 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 .92, 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 10 percent, what is its beta? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) d. If a portfolio of the two assets has a beta of 2.38, what are the portfolio weights? (Do not round intermediate calculations. A negative answer should be indicated by minus sign.) 7.55% 0.7731 0.2269 a. Expected return b. Weight of stock b. Weight of risk-free c. Portfolio beta d. Weight of stock d. Weight of risk-free Step by Step Solution
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