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  3. suppose bank of america stock has a beta of 1.32,

Suppose Bank of America stock has a beta of 1.32, whereas Boeing stock has a...

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Finance

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Suppose Bank of America stock has a beta of 1.32, whereas Boeing stock has a beta of 1.23. ll the risk-free interest rate is 1.78% and the expected return of the market portfolio is 10%, according to the CAPM. (Show your calculations) a- What is the expected return of Bank of America stock? b- What is the expected return of Boeing stock? c-What is the beta of a portfolio that consists of 45% Bank of America stock and 55% Boeing stock? d-What is the expected return of a portfolio that consists of 45% of Bank of America and 55% Boeing stock? (Make sure to solve it in two ways)

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