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value: 10.00 points A stock has a beta of 0.7 and an expected return of 8 percent. A risk-free asset currently earns 3 percent. a.
value: 10.00 points A stock has a beta of 0.7 and an expected return of 8 percent. A risk-free asset currently earns 3 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Round your answer to 2 decimal places. Omit the "%"' sign in your response.) Expected return b. If a portfolio of the two assets has a beta of 0.6, what are the portfolio weights? (Round your answers to 2 decimal places. Omit the'%" sign in your response.) Weight Xs c. If a portfolio of the two assets has an expected return of 6 percent, what is its beta? (Round your answer to 2 decimal places.) Beta d. If a portfolio of the two assets has a beta of 1.40, what are the portfolio weights? (Negative amounts should be indicated by a minus sign. Omit the "%" sign in your response.) Weight Xs Xrf
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