Problem 11-17 Using CAPM [LO 4) A stock has a beta of 1.27 and an expected return of 12.5 percent. A risk-free asset currently earns 4.15 percent Required: (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 percentage rounded to 2 decimal places (e.g 32.16)) Expected return 8 325 % (b) If a portfolio of the two assets has a beta of 0 87, what are the portfolio weights? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g.. 32.1616)) Weight of the stock Weight of the risk-free asset 0685 0.315 (c) If a portfolio of the two assets has an expected return of 11.7 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g, 32.16).) Beta 1.148 If a portfolio of the two assets has a beta of 2 47, what are the portfolio weights? (Negative amounts should be indicated by a minus sign. Do not round in answers to 4 decimal places (e.g. 32.1616).) d) termediate calculations. Round your 1.95 Weight of the stock Weight of the risk-free asset Hints References eBook&Resources