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##### 11. Using CAPM A stock has a beta of 1.35 and...

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11. Using CAPM A stock has a beta of 1.35 and an expected return of 16 percent. A risk-free asset currently earns 4.8 percent. Required: (a) The expected return on a portfolio that is equally invested in the two assets is ___percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16.)) (b) If a portfolio of the two assets has a beta of .95, the weight of the stock is ___percent and the weight of the risk-free is __percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16.)) (c) If a portfolio of the two assets has an expected return of 8 percent, its beta is __. (Round your answer to 3 decimal places. (e.g., 32.161)) (d) If a portfolio of the two assets has a beta of 2.70, the weight of the stock is ___percent and the weight of the risk-free is ___percent (Negative amount should be indicated by a minus sign. Do not include the percent signs (%)).,Please return answer in excel. Thank you.

Paper#5571 | Written in 18-Jul-2015

Price : \$25