Question: 3.Suppose you have the following information: SECURITY RETURN STANDARD DEVIATION BETA A 16% 20% 1.2 B 12% 25% 0.8 T-BILLS 4% ??? ??? What is

3.Suppose you have the following information:

SECURITY RETURN STANDARD DEVIATION BETA
A 16% 20% 1.2
B 12% 25% 0.8
T-BILLS 4% ??? ???

  1. What is the portfolio expected return and portfolio beta if you have 35% in asset A, 45% in asset B, and 20% in T-bills?Lingna
  2. What is the portfolio expected return if you have 140% invested in asset A, and the remainder in T-bills via borrowing at the risk-free rate?

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