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Suppose Intel stock has a beta of 0.8, whereas Boeing stock has a beta of 1.19. If the risk-free interest rate 5.9%is and the expected
Suppose Intel stock has a beta of 0.8, whereas Boeing stock has a beta of 1.19. If the risk-free interest rate 5.9%is and the expected return of the market portfolio is 11.5%, 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 Boeing stock 30%?
d. What is the expected return of a portfolio that consists of 70% Intel stock and 30% Boeing stock?
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