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 return 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 % 60% Intel stock and 40 % 40% Boeing stock?

d. What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock? (There are two ways to solve this.)

a. What is the expected return of Intel stock? Intel's expected return is ___ %. (Round to one decimal place.)

b. What is the expected return of Boeing stock? Boeing's expected return is ____ %. (Round to one decimal place.)

c. What is the beta of a portfolio that consists of 60% Intel stock and 40% Boeing stock? The portfolio beta is _____ .(Round to two decimal places.)

d. What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock? (There are two ways to solve this.)

The expected return of the portfolio is ____%. (Round to one decimal place.)