Question: Problem 13-17 Using the SML [LO4] Asset W has an expected return of 13.8 percent and a beta of 1.40. If the risk-free rate is
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Problem 13-17 Using the SML [LO4] Asset W has an expected return of 13.8 percent and a beta of 1.40. If the risk-free rate is 5.4 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 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 Portfoli Expected Returrn Portfolio Beta 0% 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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Slope of the line
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