What is expected return on portfolio

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A stock has a beta of 1.1 and an expected return of 15 percent. A risk-free asset currently earns 5 percent. What is the expected return on a portfolio that is equally invested in the two assets?

?a. Referring to the same problem, if a portfolio of the two assets has a beta of .6, what are the portfolio weights?

?b. Referring to the same problem, if a portfolio of the two assets has an expected return of 9%, what is its beta?

?c. Referring to the same problem, if a portfolio of the two assets has a beta of 2.20, what are the portfolio weights?

Reference no: EM131528676

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