# If a portfolio of the two assets has a beta of .99, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)   Weight of stock Risk-free weight

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If a portfolio of the two assets has a beta of .99, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

 Weight of stock Risk-free weight
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Step 1

Hi. Since there is no information given regarding the beta of stock, we are randomly assuming the beta as 1.40. Kindly replace with the original beta values given.

Step 2

Calculation of Portfolio Weights:

The weight of stock is 70.71% and the weight of risk-free asset is 29.29%.

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