What is the expected return on a portfolio that is equally


Problem:

A stock has a beta of 1.2 and an expected return of 9 percent. A risk-free asset currently earns 4 percent.

a. What is the expected return on a portfolio that is equally invested in the two assets?

b. If a portfolio of the two assets has a beta of 1.1, what are the portfolio weights?

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

d. If a portfolio of the two assets has a beta of 2.40 what ate the portfolio weights?

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Business Management: What is the expected return on a portfolio that is equally
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