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Suppose Intel stock has a beta of 0.85, whereas Boeing stock has a beta of 1.28. If the risk-free interest rate 4.8% is and the
Suppose Intel stock has a beta of 0.85, whereas Boeing stock has a beta of 1.28. If the risk-free interest rate 4.8% is and the expected return of the market portfolio is 10.8%, 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 60% Intel stock and Boeing stock 40%?
d. What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock?
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