Suppose Intel stock has a beta of

0.89,

whereas Boeing stock has a beta of

1.28.

If the risk-free interest rate is

3.5%

and the expected return of the market portfolio is

13.5%,

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

70%

Intel stock and

30%

Boeing stock?

d. What is the expected return of a portfolio that consists of

70%

Intel stock and

30%

Boeing stock? (There are two ways to solve this.)

a. What is the expected return of Intel stock?

Intel's expected return is

nothing%.

(Round to one decimal place.)

b. What is the expected return of Boeing stock?

Boeing's expected return is

nothing%.

(Round to one decimal place.)

c.

What is the beta of a portfolio that consists of

70%

Intel stock and

30%

Boeing stock?

The portfolio beta is

nothing.

(Round to two decimal places.)

d. What is the expected return of a portfolio that consists of

70%

Intel stock and

30%

Boeing stock? (There are two ways to solve this.)

The expected return of the portfolio is

nothing%.

(Round to one decimal place.)