Question: Problem 13-17 Using the SML (LO4] Asset W has an expected return of 13.4 percent and a beta of 1.60. If the risk-free rate is
Problem 13-17 Using the SML (LO4] Asset W has an expected return of 13.4 percent and a beta of 1.60. If the risk-free rate is 5 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 returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g., 32.161.) Percentage of Portfolio in Asset W Portfolio Beta 0 % Portfolio Expected Return % % % 25 50 75 % % 100 125 % 150 % 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 %
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