Question: i need help with B. A stock has a beta of 1.0 and an expected return of 14 percent. A risk-free asset currently earns 4.5
A stock has a beta of 1.0 and an expected return of 14 percent. A risk-free asset currently earns 4.5 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete and correct. b. If a portfolio of the two assets has a beta of .85 , what are the portfolio weights? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct
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