Problem 13 17 Using the SML LO4 Asset W has an expected return of 10 6 percent and a beta of 1 40 If the risk free rate is 3 6 percent, complete the following table for portfolios of Asset W and a risk free asset (Leave no cells blank be certain to enter 0 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 Expected Return Portfolio Beta 0 3 600 0 00 25 5 350 0 35 50 7 100 0 70 75 8 850 1 05 100 10 600 1 40 125 12 350 1 75 150 14 100 2 10 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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Question: Problem 13-17 Using the SML [LO4] Asset W has an expected return of 10.6 percent and a beta of 1.40. If the risk-free rate is

Problem 13-17 Using the SML [LO4]

Asset W has an expected return of 10.6 percent and a beta of 1.40. If the risk-free rate is 3.6 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" 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 Expected Return	Portfolio Beta
0	%	3.600%		0.00
25		5.350%		0.35
50		7.100%		0.70
75		8.850%		1.05
100		10.600%		1.40
125		12.350%		1.75
150		14.100%		2.10

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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