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What is the beta of this asset

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Question: The risk-free rate is 0.06. the return on the market portfolio is 0.11, and the variance of the market portfolio's return is 0.25. An asset has a standard deviation of 1.4 percent, and its returns have a correlation coef?cient of 0.30 with the market portfolio's returns.

a. What is the beta of this asset? And What is its expected return?

b. If you invest 40 percent of your wealth in the riskless asset and the remaining in this asset. What is the beta of your investment? And What is the expected return of your investment?

Reference no: EM133377005

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