What is the expected return on a portfolio that is comprised

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Reference no: EM133340986

Questions: A stock has an expected return of 17.5% and a beta of 1.65. Another asset which has low risk with a beta of .25 is earning 3.25%

a) What is the expected return on a portfolio that is comprised of one-half the higher risk stock and one-half the lower risk asset?

b) Calculate the weights of each of these if they are the only 2 holdings in a portfolio which has a beta of 1.00.

c) If the portfolio of these two holdings earned 10%, what would be the beta of the portfolio?

Reference no: EM133340986

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