What is the expected return on portfolio

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A stock has a beta of 0.9 and an expected return of 13 percent. A risk-free asset currently earns 4.4 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.)

b. If a portfolio of the two assets has a beta of 0.78, what are the portfolio weights? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

c. If a portfolio of the two assets has an expected return of 9.00 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 1.01, what are the portfolio weights? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Reference no: EM132052943

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