What is the expected rate on a portfolio

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A stock has a beta of 1.35 and a expected return of 13.3 percent. Arisk free asset currently ears 4.55 percent.

a. What is the expected rate on a portfolio that is equally invested in the two assets?

b. If the portfolio of the two assets has a beta of .95, what is the portfolio weight?

c. If a portfolio of the two assets has a expected return of 12.5 percent, what is its beta?

d. If a portfolio of two assets has a beta of 2.55, what are the portfolio weights?

Reference no: EM132546417

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