Problem 11-17 Using CAPM [LO 4] A stock has a beta of 1.28 and an expected return of 12.6 percent. A risk-free asset currently earns 4.2 percent. Required: (a) What is the expected retum on a portfolio that is equally invested in the two assets? (Do not round Intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (0.9.. 32:16).) Expected return 8.4 % (b) If a portfolio of the two assets has a beta of 0.88, what are the portfolio weights ? (Do not round Intermediate calculations. Round your answers to 4 decimal places (0.9., 32.1616).) Weight of the stock Weight of the risk-free asset 68.75r 31.25 (C) If a portfolio of the two assets has an expected return of 11.8 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places (0.9., 32.16).) Beta 2.48r (d) If a portfolio of the two assets has a beta of 2.48, what are the portfolio weights? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places (0.9., 32.1616).) Weight of the stock Weight of the risk-free asset 193.75 -93.75