Suppose the risk-free return is 3.3% and the market portfolio has an expected return of 11.9% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.77. What is its expected return? Suppose Intel stock has a beta of 0.78, whereas Boeing stock has a beta of 1.28. If the risk-free interest rate is 3.8% and the expected return of the market portfolio is 11.6%, 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 70% Intel stock and 30% Boeing stock?

d. What is the expected return of a portfolio that consists of 70% Intel stock and 30% Boeing stock? (There are two ways to solve this.)