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What is the expected return on a portfolio

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Reference no: EM132990052

Question - A stock has a beta of 1.15 and an expected return of 13 percent. A risk-free asset currently earns 2.8 percent.

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?

c. If a portfolio of the two assets has an expected return of 9 percent, what is its beta?

d. If a portfolio of the two assets has a beta of 2.30, what are the portfolio weights?

Reference no: EM132990052

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