Suppose Intel stock has a beta of 0.96, whereas Boeing stock has a beta of 2.31....
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Suppose Intel stock has a beta of 0.96, whereas Boeing stock has a beta of 2.31. If the risk-free interest rate is 4.07% and the expected return of the market portfolio is 11.89%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 70% Intel stock and 30% Boeing stock? d. What is the expected return of a portfolio that consists of 70% Intel stock and 30% Boeing stock? (There are two ways to solve this.) Suppose Intel stock has a beta of 0.96, whereas Boeing stock has a beta of 2.31. If the risk-free interest rate is 4.07% and the expected return of the market portfolio is 11.89%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 70% Intel stock and 30% Boeing stock? d. What is the expected return of a portfolio that consists of 70% Intel stock and 30% Boeing stock? (There are two ways to solve this.)
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