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Submit test possible Suppose Intel stock has a beta of 0 . 8 9 , whereas Boeing stock has a beta of 1 . 1
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Suppose Intel stock has a beta of whereas Boeing stock has a beta of If the riskfree interest rate is and the expected return of the market portfolio is according to the CAPM,
a What is the expected return of Intel stock?
b What is the expected return of Boeing stock?
c What is the beta of a portfolio that consists of Intel stock and Boeing stock?
d What is the expected return of a portfolio that consists of Intel stock and Boeing stock? There are two ways to solve this.
a What is the expected return of Intel stock?
Intel's expected return is
Round to one decimal place.
b What is the expected return of Boeing stock?
Boeing's expected return is
Round to one decimal place.
c What is the beta of a portfolio that consists of Intel stock and Boeing stock?
The portfolio beta is
Round to two decimal places.
d What is the expected return of a portfolio that consists of Intel stock and Boeing stock? There are two ways to solve this.
The expected return of the portfolio is
Round to one decimal place.
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