Portfolio weights-equally invested in the two assets

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A stock has a beta of 19.5 and an expected return of 12%. A risk free asset currently earns 3.8%. (please show your calculation and formula used,)

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

b) If portfolio of the two assets has a beta of .78, what are the portfolio weights?

c) If the portfolio of the two assets has an expected return of 10%, what is its beta?

d) Ifa portfolio of the two assets has a beta of 3.9, what are the portfolio weights?

Reference no: EM131131403

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