Suppose Intel stock has a beta of 1.6, whereas Boeing stock has a beta of 1. If
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Question:
Suppose Intel stock has a beta of 1.6, whereas Boeing stock has a beta of 1. If the risk-free interest rate is 4.0 % and the market risk premium is 6.0 %, according to the CAPM:
a. What is the expected return of Intelstock?
b. What is the expected return of Boeingstock?
c. What is the beta of a portfolio that consists of 60% Intel stock and 40% Boeing stock?
d. What is the expected return of a portfolio that consists of 60 % Intel stock and 40 % Boeing stock?
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