Suppose intel stock has a beta of 18 whereas boeing stock, Ask an Expert

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Suppose Intel stock has a beta of 1.8, whereas Boeing stock has a beta of 1.2. If the risk free interest rate is 5% and the expected return of the market portfolio is 15%, according to the CAPM,

a. What is the expected return of Intel stock?

b. What is the expected return of Boeing stock?

c. What is the beta of a portfolio that consists of 70% Intel stock and 30% Boeing stock?

d. What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92067144

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