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Suppose Intel stock has a beta of 0 . 7 7 , whereas Boeing stock has a beta of 1 . 2 1 . If

Suppose Intel stock has a beta of 0.77, whereas Boeing stock has a beta of 1.21. If the risk-free interest rate is 3.3%
and the expected return of the market portfolio is 13.6%, 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 60% Intel stock and 40% Boeing stock?
d. What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock? (There are two
ways to solve this.)
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