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You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.35 and the
You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.35 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?(Round your answer to 2 decimal places.(e.g.,32.16)) You own a portfolio that has $2,700 invested in Stock A and $3,700 invested in Stock B. If the expected returns on these stocks are 9 percent and 12 percent, respectively, what is the expected return on the portfolio?(Round your answer to 2 decimal places.(e.g.,32.16)) A stock has an expected return of 13 percent, its beta is 1.45, and the expected return on the market is 10.5 percent. What must the risk-free rate be? (Round your answer to 2 decimal places.(e.g.,32.16))
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