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A stock has a beta of 0.5 and an expected return of 9.6 percent. A risk-free...

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Finance

A stock has a beta of 0.5 and an expected return of 9.6 percent.A risk-free asset currently earns 3.3 percent. If a portfolio ofthe two assets has an expected return of 12 percent, what is itsbeta? (Do not round intermediate calculations. Round youranswer to 2 decimal places.)

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As per CAPM expected return of a asset or portfolio can becalculated with following equation rf risk free    See Answer
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