Suppose intel stock has a beta of 0.80, whereas Boeing stock has a beta of 1.15. If the risk-free interest rate is 3.1% and the expected retum of the market portfolio is 10.1%, according to the CAPM. a. What is the expected retum of Intel stock? b. What is the expected return of Boeing stock? e. What is the bota of a portfolio that consists of 55% Intel stock and 45% Boeing stock? d. What is the expected return of a portfolio that consists of 56% Intel stock and 45% Boeing stock? (There are two ways to solve this.)

Suppose intel stock has a beta of 0.80, whereas Boeing stock has a beta of 1.15. If the risk-free interest rate is 3.1% and the expected retum of the market portfolio is 10.1%, according to the CAPM. a. What is the expected retum of Intel stock? b. What is the expected return of Boeing stock? e. What is the bota of a portfolio that consists of 55% Intel stock and 45% Boeing stock? d. What is the expected return of a portfolio that consists of 56% Intel stock and 45% Boeing stock? (There are two ways to solve this.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 25P

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