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Suppose Intel stock has a beta of 0 . 8 3 , whereas Boeing stock has a beta of 2 . 3 3 . If
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 stockThere are two ways to solve this.
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Part
a What is the expected return of Intel stock
The expected return of Intel stock is
Round to two decimal places.
Part
b What is the expected return of Boeing stock
The expected return of Boeing stock is
enter your response hereRound to two decimal places.
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