Estimate what is the expected return on a portfolio

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Problem 1: An investment has a beta of 1.12 and expected return of 10.8%. A risk-free asset currently earns 2.7%. 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 0.92, what is the portfolio weights?

Reference no: EM132759946

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