Question: Excel McGraw Hill Excel Question - Saved File Home Insert Draw Formulas Data Review Calibri 11 B A1 1 2 3 fx Accessibility tab

Excel McGraw Hill Excel Question - Saved File Home Insert Draw Formulas

 

Excel McGraw Hill Excel Question - Saved File Home Insert Draw Formulas Data Review Calibri 11 B A1 1 2 3 fx Accessibility tab summary: Students please use the inform B C D E F Asset W has an expected return of 8.8 percent and a beta of .90. If the risk-free rate is 2.6 percent, complete the following table for portfolios of Asset W and a risk-free asset. What is the slope of the line that results? 4 Input area: 5 6 Stock E(R) 7 Stock beta 8 Risk-free return 9 8.80% 0.90 2.60% 0 (Use cells A6 to B8 from the given information to complete this question.) 1 2 Output area: 34 3 4 Weight of W Weight of risk-free Portfolio E(R) Portfolio beta 5 0% 100% 0.000 01 6 25% 75% 7 50% 50% 8 75% 25% 9 100% 0% 20 125% -25% 1 150% -50% 2 Slope of SML -3

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