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please answer all parts of the question thankyou 3. A stock has a beta of 1.19 and an expected return of 12.4%. A risk-free asset
please answer all parts of the question thankyou
3. A stock has a beta of 1.19 and an expected return of 12.4%. A risk-free asset currently earns 2.7%. (12 Marks) a. What is the expected return on a portfolio that is equally invested in the two assets? b. If a portfolio of the two assets has a beta of .92, what are the portfolio weights? c. If a portfolio of the two assets has an expected return of 10%, what is its beta? d. If a portfolio of the two assets has a beta of 2.38, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain Step by Step Solution
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