A stock has a beta of 1.80 and an expected return of 13 percent. A...
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Accounting
A stock has a beta of 1.80 and an expected return of 13 percent. A risk-free asset currently earns 3.2 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, e.g., 32.16.)
Expected return
%
c.
If a portfolio of the two assets has an expected return of 9 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.)
Beta
d.
If a portfolio of the two assets has a beta of 3.60, what are the portfolio weights? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers as a whole number.)
Weight of stock
Risk-free weight
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