Asset W has an expected return of 13 percent and a beta of 1.25. If...
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| Asset W has an expected return of 13 percent and a beta of 1.25. If the risk-free rate is 4.8 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g., 32.161.) |
| Percentage of Portfolio in Asset W | Portfolio Expected Return | Portfolio Beta | |||
| 0 | % | % | |||
| 25 | % | ||||
| 50 | % | ||||
| 75 | % | ||||
| 100 | % | ||||
| 125 | % | ||||
| 150 | % | ||||
| If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Slope of the line | % |
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