Question: Chapter 11 End of Chapter Questions and Problems - Question 17 (Part a) 3.38% 7.45% 10.40% 12.43% 14.39% LO4 17. Using CAPM A stock has

Chapter 11 End of Chapter Questions and Problems - Question 17 (Part a) 3.38% 7.45% 10.40% 12.43% 14.39% LO4 17. Using CAPM A stock has a beta of 1.15 and an expected return of 11.4 percent. A risk-free asset currently earns 3.5 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? b. If a portfolio of the two assets hus a beta of 7, what are the portfolio weights? e. I'a portfolio of the two assets has an expected return of percent, what Is its beta? d. If a portfolio of the two assets has a beta of 2.30, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain

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