Suppose Intel stock has a beta of

0.84,

whereas Boeing stock has a beta of

1.17.

If the risk-free interest rate is

6.2%

and the expected return of the market portfolio is

13.7%,

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?