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Suppose Intel stock has a beta of 1 . 0 3 , whereas Boeing stock has a beta of 2 . 0 5 . If
Suppose Intel stock has a beta of whereas Boeing stock has a beta of If the riskfree interest rate is and the expected return of the market portfolio is 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 Intel stock and Boeing stock?
d What is the expected return of a portfolio that consists of Intel stock and Boeing stock? There are two ways to solve this.
a What is the expected return of Intel stock?
The expected return of Intel stock is Round to two decimal places.
b What is the expected return of Boeing stock?
The expected return of Boeing stock is Round to two decimal places.
c What is the beta of a portfolio that consists of Intel stock and Boeing stock?
The beta of the portfolio is
Round to two decimal places.
d What is the expected return of a portfolio that consists of Intel stock and Boeing stock? There are two ways to solve this.
The expected return of the portfolio is Round to two decimal places.
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