A stock has a beta of 0.7 and an expected return of 17 percent. A risk-free...
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A stock has a beta of 0.7 and an expected return of 17 percent. A risk-free asset currently earns 4.8 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return 10.90 % b. If a portfolio of the two assets has a beta of 0.50, what are the portfolio weights? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Stock Risk-free asset Portfolio Weight 71.43% 28.57 % c. If a portfolio of the two assets has an expected return of 10.00 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Beta I d. If a portfolio of the two assets has a beta of 1.27, what are the portfolio weights? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Stock Dick froo accet Portfolio Weight % 0% A stock has a beta of 0.7 and an expected return of 17 percent. A risk-free asset currently earns 4.8 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return 10.90 % b. If a portfolio of the two assets has a beta of 0.50, what are the portfolio weights? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Stock Risk-free asset Portfolio Weight 71.43% 28.57 % c. If a portfolio of the two assets has an expected return of 10.00 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Beta I d. If a portfolio of the two assets has a beta of 1.27, what are the portfolio weights? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Stock Dick froo accet Portfolio Weight % 0%
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