Question: need to know how to do this by hand not excel stock be? 14. Using CAPM. A stock has an expected return of 15 percent,

stock be? 14. Using CAPM. A stock has an expected return of 15 percent, the risk-free rate is 4 percent, and the market risk premium is 8 percent. What must the beta of this stock be? 15. Using CAPM. A stock has an expected return of 16 percent, its beta is 1.2, and the risk-free rate is 5 percent. What must the expected return on the market be? 16. Using CAPM. A stock has an expected return of 16.4 percent and a beta of 1.3. and the expected return on the market is 14 percent. What must the risk-free rate be? 17. Using CAPM. A stock has a beta of 1.2 and an expected return of 14 percent. A risk-free asset currently earns 5 percent. 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.7, what are the portfolio weights? If a portfolio of the two assets has an expected return of 11 percent, what is its beta? d. If a portfolio of the two assets has a beta of 2.40, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain. a. c. ond heta of 12 If
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