What is the expected return on a portfolio

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A stock has a beta of 1.0 and an expected return of 12 percent. A risk-free asset currently earns 3.6 percent.

a.What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

b.If a portfolio of the two assets has a beta of .26, what are the portfolio weights? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Portfolio Weight xS % xrf %

c. If a portfolio of the two assets has an expected return of 12.00 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

d. If a portfolio of the two assets has a beta of 1.35, what are the portfolio weights? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Porfolio Weight -xS % xrf %

Reference no: EM131516971

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