Using CAPM A stock has a beta of 1.15 and an expected return of 11.4 percent. A risk-free asset currently earns 3.5 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? b. If a portfolio of the two assets has a beta of .7, what are the portfolio weights? c. If a portfolio of the two assets has an expected return of 9 percent, what is its beta? d. If a portfolio of the two assets has a beta of 2.30, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain. Refer to If a portfolio of the two assets has a beta of .7, what are the portfolio weights? The weights for the stock and the risk-free asset are 70% and 30%, respectively. The weights for the stock and the risk-free asset are 61% and 39%, respectively. The weights for the stock and the risk-free asset are 79% and 21%, respectively. The weights for the stock and the risk-free asset are 88% and 12%, respectively. Refer to Chapter 11 Question 17.c. If a portfolio of the two assets has an expected return of 9 percent, what is its beta? 1.1 1.0 0.8 0.9 Refer to Chapter 11 Question 17.d. If a portfolio of the two assets has a beta of 2.30, what are the portfolio weights? The weights for the stock and the risk-free asset are 100% and 100%, respectively. The weights for the stock and the risk-free asset are 200% and 100%, respectively. The weights for the stock and the risk-free asset are 200% and 0%, respectively. The weights for the stock and the risk-free asset are 50% and 50%, respectively