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Problem 11-18 Using the SML [LO 4] Asset W has an expected return of 13.6 percent and a beta of 1.37. If the risk-free rate
Problem 11-18 Using the SML [LO 4]
Asset W has an expected return of 13.6 percent and a beta of 1.37. If the risk-free rate is 4.62 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your portfolio expected return answers as a percentage and round to 2 decimal places (e.g., 32.16). Round your portfolio beta answers to 3 decimal places (e.g., 32.161).) |
Percentage of | Portfolio | Portfolio | ||||||
Portfolio in Asset W | Expected Return | Beta | ||||||
0% | % | |||||||
25 | % | |||||||
50 | % | |||||||
75 | % | |||||||
100 | % | |||||||
125 | % | |||||||
150 | % |
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