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Security A has a beta of 1.23 and an expected return of 11.7%. Security B is risk free and currently earns 3.5%. a. What is

Security A has a beta of 1.23 and an expected return of 11.7%. Security B is risk free and currently earns 3.5%.

a. What is the expected return on a portfolio that is equally invested in the two securities?

b. If a portfolio of the two securities has a beta of 0.7, what are the portfolio weights?

c. If a portfolio of the two securities has an expected return of 9%, what is its beta?

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