Problem: A stock has a beta of 1.15 and an expected return of 16 percent. A risk-free asset currently earns 4 percent.
a. The expected return on a portfolio that is equally invested in the two assets is ________ percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)
b. If a portfolio of the two assets has a beta of 0.7, the weight of the stock is ________ percent and the weight of the risk-free is percent (Input answers as a percent rounded to 4 decimal places, without the percent sign).
c. If a portfolio of the two assets has an expected return of 11 percent, its beta is ________ . (Round answer to 6 decimal places.)
d. If a portfolio of the two assets has a beta of 2.3, the weight of the stock is _______ percent and the weight of the risk-free is ________percent (Input answers as a percent rounded to 2 decimal places, without the percent sign).