Question: Problem 11-17 Using the SML Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4

 Problem 11-17 Using the SML Asset W has an expected return

Problem 11-17 Using the SML Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your expected return answers as a percent rounded to 4 decimal places, e.g., 32.1623, and beta answers to 3 decimal places, e.g., 32.161.) Portfolio Beta Percentage of Portfolio Portfolio Expected in Asset W Return 0 % % 0 25 % 0.300 50 % 0.600 75 % 0.900 100 % 1.200 125 % 1.500 150 % 1.800 If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Slope of the line 6.92 %

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