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Q10. (7 marks) Asset W has an expected return of 11.8% and a beta of 1.15. If the risk free rate is 3.7%, complete the

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Q10. (7 marks) Asset W has an expected return of 11.8% and a beta of 1.15. If the risk free rate is 3.7%, complete the following table for portfolios of W and a risk free asset. Illustrate the relationship between portfolio expected return and portfolio beta by plotting the expected returns against the betas. What is the slope of the line that results? Percentage of Portfolio in Asset W Portfolio Expected Return Portfolio Beta 0% 25% 50% 75% 100% 150%

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