The Stock A has a beta of 1.27 and an expected return of 14.5 percent. The risk-free asset currently earns 3.1 percent. a. What is the market risk premium?

The market risk premium %

b. Now you construct the first portfolio in which 62% is invested in Stock A and the rest is invested in the risk-free asset. What is the beta of this portfolio?

Beta

c. What is the expected return on this portfolio?

Expected return %

d. Now, you want to use the Stock A and the risk free asset to construct the second portfolio that has a beta of 0.87. What are the portfolio weights?

Weight of the Stock A	%
Weight of the risk-free asset	%

e. For the second portfolio that you just constructed, what is its expected return? Expected return %

f. If you want to use the Stock A and the risk free asset to construct the third portfolio that has the average systematic risk measured by the market portfolio, what is this thirs portfolio's expected return?

Expected return %