A stock has a beta of 1.3 and an expected return of 12.8 percent. A risk-free...

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Finance

A stock has a beta of 1.3 and an expected return of 12.8percent. A risk-free asset currently earns 4.3 percent.

a. What is the expected return on a portfolio thatis equally invested in the two assets? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)

Expected return            %

b. If a portfolio of the two assets has a beta of.90, what are the portfolio weights? (Do not roundintermediate calculations and round your answers to 4 decimalplaces, e.g., 32.1616.)

Weight of the stock
Weight of the risk-free asset

c. If a portfolio of the two assets has anexpected return of 12 percent, what is its beta? (Do notround intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

Beta           

d. If a portfolio of the two assets has a beta of2.5, what are the portfolio weights? (A negative answershould be indicated by a minus sign. Do not round intermediatecalculations and round your answers to 4 decimal places, e.g.,32.1616.)

Weight of the stock
Weight of the risk-free asset

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A stock has a beta of 1.3 and an expected return of 12.8percent. A risk-free asset currently earns 4.3 percent.a. What is the expected return on a portfolio thatis equally invested in the two assets? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)Expected return            %b. If a portfolio of the two assets has a beta of.90, what are the portfolio weights? (Do not roundintermediate calculations and round your answers to 4 decimalplaces, e.g., 32.1616.)Weight of the stockWeight of the risk-free assetc. If a portfolio of the two assets has anexpected return of 12 percent, what is its beta? (Do notround intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)Beta           d. If a portfolio of the two assets has a beta of2.5, what are the portfolio weights? (A negative answershould be indicated by a minus sign. Do not round intermediatecalculations and round your answers to 4 decimal places, e.g.,32.1616.)Weight of the stockWeight of the risk-free asset

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