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Suppose Intel stock has a beta of 0.8, whereas boeing stock has a beta of 1.2. if the risk free intrest rate is 4% and
Suppose Intel stock has a beta of 0.8, whereas boeing stock has a beta of 1.2. if the risk free intrest rate is 4% and the expected return of the market portfolio is 10% according to CAPM
please answer ALL parts of the questions and show work
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 60% intel stock and 40% boeing stock?
d. what is the expected return of a portfolio that consists of 60% intel stock and 40% boeing stock? (show both ways to solve this)
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