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x 12.4 You would like to combine a risky stock with a beta of 1.79 with U.S. Treasury bills (risk free asset) in such a

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x 12.4 You would like to combine a risky stock with a beta of 1.79 with U.S. Treasury bills (risk free asset) in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock? Only Enter the Final Answer in Decimals. Pick one: 0.5587 0.2244 0.1456 0.7622 0.1122 Add your answer Question 11 1 Point 12.5 The common stock of United Industries has a beta of 0.7 and an expected return of 9.7 percent. The risk-free rate of return is 4 percent. What is the expected return of the market? Only Enter the Final Answer in Decimals. Pick one: 0.1144 0.2453 0.1214 0.1765

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