question archive A) What is the expected return on a portfolio that is equally invested in the two assets? 6
A) What is the expected return on a portfolio that is equally invested in the two assets? 6
Subject:BusinessPrice: Bought3
A) What is the expected return on a portfolio that is equally invested in the two assets? 6.50% (See calculations below).
b. If a portfolio of the two assets has a beta of .5, what are the portfolio weights?
c. If a portfolio of the two assets has an expected return of 8 percent, what is its beta? 0.72 (See computations underneath).
d. If a portfolio of the two assets has a beta of 1.80, what are the portfolio weights? How do you interpret the weights for the two assets in this case?
