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. What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of .7, what are the portfolio weights? If a portfolio of the two assets has an expected return of 9 percent, what is its beta? If a portfolio of the two assets has a beta of 2.30, what are the portfolio weights?

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. What is the expected return on a portfolio that is equally invested in the two assets?...

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.
1. What is the expected return on a portfolio that is equally invested in the two assets?
2. If a portfolio of the two assets has a beta of .7, what are the portfolio weights?
3. If a portfolio of the two assets has an expected return of 9 percent, what is its beta?
4. If a portfolio of the two assets has a beta of 2.30, what are the portfolio weights?

Jun 05, 2022