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Suppose Intel stock has a beta of 1.8, whereas Boeing stock has a beta of 0.84. If the risk-free interest rate is 3.8 % and

Suppose Intel stock has a beta of 1.8, whereas Boeing stock has a beta of 0.84. If the risk-free interest rate is 3.8 % and the expected return of the market portfolio is 13.4 %, 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.)

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