Suppose Intel stock has a beta of

0.79,

whereas Boeing stock has a beta of

1.2.

If the risk-free interest rate is

5.3%

and the expected return of the market portfolio is

10.4%,

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? (There are two ways to solve this.)