question archive A stock has a beta of 1
A stock has a beta of 1
Subject:AccountingPrice: Bought3
A stock has a beta of 1.2 and an expected return of 15%. A risk-free asset currently earns 3%. a) What is the expected return on a portfolio that is invested 70% in the stock and 30% in the risk-?ee asset? [2%] b) If a portfolio of the two assets has a beta of 0.85, what are the portfolio weights? [2%] c) If a portfolio of the two assets has an expected return of 10%, what is its beta? [2%]
