The risk-free rate is currently 4 per cent. A share in Careful has a beta of 0.85 and an expected return of 10 per cent. Luciana has spread her investment across the risk-free rate and the share. a What is the expected return on a portfolio that is equally invested in the two assets? Ifa portfolio of the two assets has a beta of 0.50, what are the portfolio weights? b) c) If a potfolio of the two assets has an expected return of 8 per cent, what is its beta? What is the expected return on the market? d) If a portfolio of the two assets has a beta of 1.25, what are the portfolio weights? How do we interpret the weight for the risk-free asset