Asset W has an expected return of 10.4 percent and a beta of 1.25. If the risk-free rate is 3.2 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Round your expected return answers to 2 decimal places. (e.g., 32.16) and beta answers to 3 decimal places. (e.g., 32.161))
Percentage of Portfolio
in Asset W Portfolio
Expected Return Portfolio
Beta 0 % % 25 % 50 % 75 % 100 % 125 % 150 %
If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results? (Round your answer to 2 decimal places. (e.g., 32.1616))
Slope of the line %
Asset W has an expected return of 10.4 percent and a beta of 1.25. If the risk-free rate is 3.2 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Round your expected return answers to 2 decimal places. (e.g., 32.16) and beta answers to 3 decimal places. (e.g., 32.161))
| Percentage of Portfolio in Asset W | Portfolio Expected Return | Portfolio Beta | |||
| 0 | % | % | |||
| 25 | % | ||||
| 50 | % | ||||
| 75 | % | ||||
| 100 | % | ||||
| 125 | % | ||||
| 150 | % | ||||
| If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results? (Round your answer to 2 decimal places. (e.g., 32.1616)) |
| Slope of the line | % |
Related questions
| A stock has a beta of 1.21 and an expected return of 11.9 percent. A risk-free asset currently earns 3.85 percent. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) If a portfolio of the two assets has a beta of 0.81, what are the portfolio weights (Weight of the stock and Weight of the risk-free asset)? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).) If a portfolio of the two assets has an expected return of 11.1 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) If a portfolio of the two assets has a beta of 2.41, what are the portfolio weights (Weight of the stock and Weight of the risk-free asset)? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).) |
