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Please help l MetroPCS LTE 12:37 PM Ch11 HW W18.docx FIN 350 Principles of Finance (22871/26301) Done 7. Calculating Portfolio Betas. You own a portfolio

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l MetroPCS LTE 12:37 PM Ch11 HW W18.docx FIN 350 Principles of Finance (22871/26301) Done 7. Calculating Portfolio Betas. You own a portfolio equally invested in a risk-free asset and portfolio is equally as portfolio? 8. Using CAPM. A stock has a beta of 1.23, the expected return on the two stocks. If one of the stocks has a beta of 1.63 and the total risky as the market, what must the beta be for the other stock in your market is 10.9%, on this stock be! 9. Using CAPM. A stock has an expected return or 1 1.4 percent, the and the risk-free rate is 3.6 percent. What must the expected return risk-free rate is 3.7%, this stock be? 10. Using CAPM. A stock has an expected return of 10.9 percent, its and the market risk premium is 7.1 percent. What must the beta of beta is.85, and the market be? 1 Using CAPM. A stock has an expected return of 10.7 percent and a risk-free rate is 2.8 percent. What must the expected return on the beta of.91, and free rate be? 2 Using CAPM. A stock has a beta of 1.23 and an expected return of the expected return on the market is 11.5 percent. What must the risk 11.7 percent. A risk-free asset currently earns 3.5 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? b Ifa portfolio of the two assets has a beta of.7, what are the portfolio weights? c. Ifa portfolio of the two assets has an expected return of 9 percent, what is its beta

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