A stock has a beta of 1.65 and an expected return of 11 percent. A risk-free asset currently earns 2.6 percent. a. What is the expected return on a portfolio that is equally invested in the two assets

the expected return is 6.8%

Explanation:

The computation of the expected return is shown below:

= Half basis × expected return + half basis × risk-free asset

= 0.5 × 11% + 0.5 × 2.6%

= 5.5% + 1.3%

= 6.8%

hence, the expected return is 6.8%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

convection currents in magma drive plate tectonics. the answer is true.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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