A stock has a beta of 1.1 and an expected return of 13 percent. A risk-free asse
ID: 2719680 • Letter: A
Question
A stock has a beta of 1.1 and an expected return of 13 percent. A risk-free asset currently earns 3.7 percent.
What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
If a portfolio of the two assets has a beta of .23, what are the portfolio weights? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
If a portfolio of the two assets has an expected return of 12.25 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
If a portfolio of the two assets has a beta of 1.32, what are the portfolio weights? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
a.What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Explanation / Answer
A stock has a beta of 1.1 and an expected return of 13 percent. A risk-free asse
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.