1. A stock has a beta of 1.15 and an expected return of 14 percent. A risk-free assetCurrently earns 4.2 percent.a . What is expected return on a portfolio that is equally in invertedassets?b. if portfolio of the two assets has beta of 75, what are the portfolio weights?C. if a portfolio of the two assets has an expected return of 8 percent .what is itsbeta?the two

a. Expected return of a portfolio with 2 assets can be determined with the formula below:Expected…

1. A stock has a beta of 1.15 and an expected return of 14 percent. A risk-free asset Currently earns 4.2 percent. a . What is expected return on a portfolio that is equally in inverted in the two assets? b. if portfolio of the two assets has beta of 75, what are the portfolio weights? C. if a portfolio of the two assets has an expected return of 8 percent .what is its beta?