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Stock A has a beta of 1 . 4 7 and stock B has a beta of 0 . 7 1 . Assume the risk
Stock A has a beta of and stock has a beta of Assume the riskfree rate is and the
market risk premium is
a What is the expected return on stock A and stock ;
b What would be the beta and expected return of a portfolio in which the investment in stock is
half as much as the investment in stock B;
c Find the weights that would yield a portfolio expected return of What is the beta of this
portfolio? A: B: ;
Im wondering about part b and c specifically, I cant calulate those answers. I put the weights as for A and for B and got wrong answers.
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