Question: explain each answer for 10 pls SR IS Epected to pay a VIII TISK-tree rate is 5.5 percent, what should the share price be in
SR IS Epected to pay a VIII TISK-tree rate is 5.5 percent, what should the share price be in one year? 10. Portfolio Weights (L04, CFA2) A stock has a beta of 0.9 and an expected return of 9 per- cent. A risk-free asset currently earns 4 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 has a beta of 0.5, what are the portfolio weights? c. If a portfolio of the two assets has an expected return of 8 percent, what is its beta? d. If a portfolio of the two assets has a beta of 1.80, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain
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