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Suppose Intel stock has a beta of 0.76, whereas Boeing stock has a beta of 1.21. If the risk-free interest rate is 3.7% and the

Suppose Intel stock has a beta of 0.76, whereas Boeing stock has a beta of 1.21. If the risk-free interest rate is 3.7% 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 65% Intel stock and 35% Boeing stock?

d. What is the expected return of a portfolio that consists of 65% Intel stock and 35% Boeing stock?

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