Business, 26.11.2019 05:31 bfredfred3668

Ch 11 drill question 4 note this is all one question a stock has a beta of 1.33 and an expected return of 13.1 percent. a risk-free asset currently earns 4.45 percent. required:

(a) what is the expected return on a portfolio that is equally invested in the two assets? (do not round intermediate calculations. enter your answer as a percentage rounded to 2 decimal places (e. g., 32. expected return %

(b) if a portfolio of the two assets has a beta of 0.93, what are the portfolio weights? (do not round intermediate calculations. round your answers to 4 decimal places (e. g., 32. weight of the stock weight of the risk-free asset

(c) if a portfolio of the two assets has an expected return of 12.3 percent, what is its beta? (do not round intermediate calculations. round your answer to 2 decimal places (e. g., 32. beta

d. if a portfolio of the two assets has a beta of 2.53, what are the portfolio weights? (negative amounts should be indicated by a minus sign. do not round intermediate calculations. round your answers to 4 decimal places (e. g., 32. weight of the stock weight of the risk-free

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Ch 11 drill question 4 note this is all one question a stock has a beta of 1.33 and an expected ret...