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Suppose Intel stock has a beta of 1.09 , whereas Boeing stock has a beta of 2.03 . If the risk-free interest rate is 4.32%

image text in transcribedimage text in transcribedimage text in transcribed Suppose Intel stock has a beta of 1.09 , whereas Boeing stock has a beta of 2.03 . If the risk-free interest rate is 4.32% and the expected return of the market portfolio is 13.13%, 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 55% Intel stock and 45% Boeing stock? d. What is the expected return of a portfolio that consists of 55% Intel stock and 45% 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.) Suppose the risk-free return is 3.15% and the market portfolio has an expected return of 9.91% and a standard deviation of 15.67%. Pepsico stock has a beta of 1.24 . What is its expected return? The expected return of Pepsico stock is \%. (Round to two decimal places.) You hear on the news that the S\&P 500 was down 2.2% today relative to the risk-free rate (the market's excess return was 2.2% ). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble. a. If Hewlett Packard's beta is 1.4, what is your best guess as to Hewlett Packard's excess return today? b. If Proctor and Gamble's beta is 0.7 , what is your best guess as to Proctor and Gamble's excess return today? a. If Hewlett Packard's beta is 1.4 , what is your best guess as to Hewlett Packard's excess return today? Hewlett Packard's excess return today is %. (Round to one decimal place.)

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