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Suppose Intel stock has a beta of 0 . 8 8 , whereas Boeing stock has a beta of 1 . 3 . If the

Suppose Intel stock has a beta of 0.88, whereas Boeing stock has a beta of 1.3. If the risk-free interest rate is 3.4% and the expected return of the market portfolio is 10.7%, 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? (There are two ways to solve this.)

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