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Please help asap A stock has a beta of 0.8 and an expected return of 12 percent. A risk-free asset currently earns 4.3 percent. a.
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A stock has a beta of 0.8 and an expected return of 12 percent. A risk-free asset currently earns 4.3 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. If a portfolio of the two assets has a beta of 0.71 , what are the portfolio weights? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. c. If a portfolio of the two assets has an expected return of 8.75 percent, what is its beta? Note: Do not round intermediate calculations. Round your answer to 4 decimal places. c. If a portfolio of the two assets has an expected return of 8.75 percent, what is its beta? Note: Do not round intermediate colculations. Round your answer to 4 decimal places. Answer is complete but not entirely correct. d. If a portfolio of the two assets has a beta of 1.04 , what are the portfollo weights? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Aniswer is complete but not entirely correct Step by Step Solution
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