A stock has a beta of 12 and an expected return of 9


A stock has a beta of 1.2 and an expected return of 9 percent. A risk-free asset currently earns 4 percent. What is the expected return on a portfolio that is equally invested in the two assets?

If a portfolio of the two assets has a beta of 0.8, what are the portfolio weights?

If a portfolio of the two assets has an expected return of 8 percent, what is its beta?

If a portfolio of the two assets has a beta of 2.40, what are the portfolio weights?

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Financial Management: A stock has a beta of 12 and an expected return of 9
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