Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)
image text in transcribed
32. Suppose Intel stock has a beta of 0.8 , whereas Boeing stock has a beta of 1.2 . If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, according to the CAPM, I 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions