What is the expected return on a portfolio

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A stock has a beta of 1.3 and an expected return of 12.8%. A risk-free asset currently earns 4.3%.

A) What is the expected return on a portfolio that is equally invested in the two assets?

B) If a portfolio of the two assets has a beta of .90, what are the portfolio weights?

C) If a portfolio of the two assets has an expected return of 12%, what is its beta?

D) If a portfolio of the two assets has a beta of 2.5, what are the portfolio weights?

Please use excel and explain the answer. (2 decimal places).

Reference no: EM132459172

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