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Suppose the risk-free return is 5.6% and the market portfolio has an expected return of 10.2% and a standard deviation of 16%. Johnson & Johnson
Suppose the risk-free return is 5.6% and the market portfolio has an expected return of 10.2% and a standard deviation of 16%. Johnson \& Johnson Corporation stock has a beta of 0.28. What is its expected return? The expected return is \%. (Round to two decimal places.) Suppose Intel stock has a beta of 1.47, whereas Boeing stock has a beta of 0.8. If the risk-free interest rate is 3.4% and the expected return of the market portfolio is 10.6%, 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.) a. What is the expected return of Intel stock? Intel's expected return is \%. (Round to one decimal place.)
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