Complete the table for beta and expected return. Show all work please. Asset W h
ID: 2638258 • Letter: C
Question
Complete the table for beta and expected return. Show all work please.
Asset W has an expected return of 13 percent and a beta of 1.25. If the risk-free rate is 4.5 percent. complete the following table for portfolios of Asset W and a risk-free asset. (Do not include the percent signs (%). Leave no cells blank - be certain to enter 0 wherever required. Round your portfolio expected return answers to 2 decimal places (e.g., 32.16). Round your portfolio beta answers to 3 decimal places (e.g., 32.161).)Explanation / Answer
Calculation of Expected Return = Weight of W * 13% + (1 - weight of W) * 4.5%
Calculation of Beta = Weight of W * 1.25
Weight of W Expected Return Beta
0% 4.5% 0
25% 6.625% 0.3125
50% 8.75% 0.625
75% 10.875% 0.9375
100% 13% 1.25
125% 15.1875% 1.5625
150% 17.25% 1.875
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