What are the portfolio weights for each stock

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You can form a portfolio of two assets, A and B, whose returns have the following characteristics:

The risk-free rate is 3%, and the expected return on the market portfolio is 12%.

Question 1: What's the expected return of two stocks, using the capital asset pricing model?

Question 2: If you demand an expected return of 14%, what are the portfolio weights for each stock? What is the portfolio's standard deviation?

Question 3: What's the beta of the investment portfolio? What's the sharp ratio of the investment portfolio?

Stock.           Standard Deviation              Beta              Correlation

A                       21%                            1.5                  0.4

B                        35%                              0.5                  0.4

Reference no: EM132578906

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