Question: Need help with 11 and 12 problems Thanks l MetroPCS LTE 12:37 PM Ch11 HW W18.docx Done FIN 350 Principles of S pc ma Usng
l MetroPCS LTE 12:37 PM Ch11 HW W18.docx Done FIN 350 Principles of S pc ma Usng CAPM. A stock has an expected return of 10.7 percent and a beta of .91, and free rate be? 12. Using CAPM. A stock has a beta of 1.23 and an expected return of the expected return on the market is 11.5 percent. What must the risk- 11.7 percent A risk-free asset currently earns 3.5 percent. What is the expected return on a portfolio that is equally a. invested in the two assets? b. If a portfolio of the two assets has a beta of.7, what arc the portfolio weights? c. If a portfolio of the two assets has an expected return of 9 percent, what is its beta? d. If a portfolio of the two assets has a beta of 2.46, what arc the portfolio weights? How do you interpret the weights for the two assets in this case? Explain
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