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Suppose Intel stock has a beta of 1.72, whereas Boeing stock has a beta of 0.96. If the risk-free interest rate is 4.4% and the

Suppose Intel stock has a beta of 1.72, whereas Boeing stock has a beta of 0.96. If the risk-free interest rate is 4.4% and the expected return of the market portfolio is 12.3%, 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 65% Intel stock and 35% Boeing stock?

d. What is the expected return of a portfolio that consists of 65% Intel stock and 35% Boeing stock? (Show both ways to solve this.)

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