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Business, 12.03.2021 14:50 erika6072

A stock has a beta of 1.36 and an expected return of 13.4 percent. A risk-free asset currently earns 4.6 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b. If a portfolio of the two assets has a beta of .96, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places, e. g., .1616.) c. If a portfolio of the two assets has an expected return of 12.6 percent, what is its beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) d. If a portfolio of the two assets has a beta of 2.56, what are the portfolio weights? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 4 decimal places, e. g., .1616.)

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A stock has a beta of 1.36 and an expected return of 13.4 percent. A risk-free asset currently earns...
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