1. The Stock A has a beta of 1.49 and an expected return of 13.2 percent. The risk-free asset currently earns 2.86 percent. a. What is the market risk premium?

   The market risk premium %

   b. Now you construct the first portfolio in which 74.56% 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 1.13. 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 %