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Suppose Intel stock has a beta of 1 .6, whereas Boeing stock has a beta of 1 . If the risk-free interest rate is 4.0%
Suppose Intel stock has a beta of 1 .6, whereas Boeing stock has a beta of 1 . If the risk-free interest rate is 4.0% and the expected retum of the market portfolio is 10.0%, 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 40% Boeing stock? d. What is the expected retum of a portfolio that consists of 60% Intel stock and 40% Boeing stock? (There are two ways to solve this.)
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