Stock J has a beta of 1.3 and an expected return of 13.66 percent, while Stock K has a beta of .85 and an expected return of 10.6 percent.
You want a portfolio with the same risk as the market. What is the portfolio weight of each stock?
(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)
What is the expected return of your portfolio?
(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)