Question: 34 D: text problem 20 Using CAPM: A stock has a beta of 112 and an expected return of 10.8%. A risk-free asset 35 currently

34 D: text problem 20 Using CAPM: A stock has a beta of 112 and an expected return of 10.8%. A risk-free asset 35 currently earns 2.7% 36 a. What is the expected return on a portfolio that is eqully invested in the two assets? 37 b. if a portfolio of the two assets has a beta of 92, what are the portfolio weights? (Note: you do not need to answer parts c and d from the text problem.) 39 39 40 41 42 44

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