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What is the expected return on a portfolio

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Reference no: EM132858703

Question - A stock has a beta of 1.12 and expected return of 10.8%. A risk-free asset currently earns 2.7%.

Required -

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 0.92, what are the portfolio weights?

Reference no: EM132858703

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