Problem 2 (20 marks). A stock has a beta of 1.2 and an expected return of 16%. The risk-free asset currently earns 5%. a) What is the expected return on a portfolio that is equally invested in the two assets? (5 marks) b) If a portfolio of the two assets has a beta of 0.75, what are the portfolio weights? (5 marks) c) If a portfolio of the two assets has an expected return of 8%, what is its beta? [5 marks] d) If a portfolio of the two assets has a beta of 2.3, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain. (5 marks] aurrontharis collina at $20 ner share. You buy