A stock has a beta of 12 and an expected return of 118, Ask an Expert

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A stock has a beta of 1.2 and an expected return of 11.8 percent. A risk-free asset currently earns 3.8 percent. (SHOW YOUR WORK)

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

2) If a portfolio of the two assets has a beta of .8, what are the portfolio weights?

3) If a portfolio of the two assets has an expected return of 11 percent, what is its beta?

4) If a portfolio of the two assets has a beta of 2.4, what are the portfolio weights?

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Financial Management, Finance

Category:- Financial Management
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