How do you interpret the weights for the two assets in case

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Using CAPM. A stock hazxs a beta of 1.23 and an expected return of 11.7 percent. A risk-free asset currently earns 3.5 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 .7, what are the portfolio weights? If a portfolio of the two assets has an expected return of 9 percent, what is its beta? If a portfolio of the two assets has a beta of 2.46, what are the portfolio weights? How do you interpret the weights for the two assets in this case?

Reference no: EM131520981

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