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so Homework: Assignment 7 Question 4, P8-29 (similar to) Part 1 of 5 HW Score: 0%, 0 of 8 points O Points: 0 of 1

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so Homework: Assignment 7 Question 4, P8-29 (similar to) Part 1 of 5 HW Score: 0%, 0 of 8 points O Points: 0 of 1 Save Changing risk level. Mr. Malone wants to change the overall risk of his portfolio. Currently, his portfolio is a combination of risky assets with a beta of 1.25 and an expected return of 14%. He will add a risk-free asset (U.S. Treasury bill) to his portfolio. If he wants a beta of 1.00, what percentage of his wealth should be in the risky portfolio and what percentage should be in the risk-free asset? If he wants a beta of 0.75? If he wants a beta of 0.50? If he wants a beta of 0.25? Is there a pattern here? If he wants a beta of 1.00, then he should have % of his wealth in the risky portfolio and % in the risk-free asset. (Round both answers to two decimal places.)

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