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Suppose IntelIntel stock has a beta of 1 . 0 4 1 . 0 4 , whereas BoeingBoeing stock has a beta of 2 .
Suppose IntelIntel stock has a beta of whereas BoeingBoeing stock has a beta of If the riskfree interest rate is and the expected return of the market portfolio is according to the CAPM,
a What is the expected return of IntelIntel stock
b What is the expected return of BoeingBoeing stock
c What is the beta of a portfolio that consists of IntelIntel stock and BoeingBoeing stock
d What is the expected return of a portfolio that consists of IntelIntel stock and BoeingBoeing stockThere are two ways to solve this.
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