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Stock J has a beta of 1.27 and an expected return of 13.51 percent, while Stock K has a beta of 0.82 and an expected
Stock J has a beta of 1.27 and an expected return of 13.51 percent, while Stock K has a beta of 0.82 and an expected return of 10.45 percent. You want a portfolio with the same risk as the market. |
Requirement 1: |
What is the portfolio weight of each stock? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).) |
Stock J | |
Stock K |
Requirement 2: |
What is the expected return of your portfolio? |
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