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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
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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Please help me with this one values are as follows its 0.89,1.15, 3.1% and 10.1%.pls do all parts 

Suppose Intel stock has a beta of 0.89, whereas Boeing stock has a beta of 1.15. If the risk-free interest rate is 3.1% and the expected return of the market portfolio is 10.1%, according to the CAPM. a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 55% intel stock and 45% Boeing stock? d. What is the expected retum of a portfolio that consists of 55% Intel stock and 45% Boeing stock? (There are two ways to solve this.) a. What is the expected return of Intel stock? Inter's expected return is %. (Round to one decimal place.)
Transcribed Image Text:Suppose Intel stock has a beta of 0.89, whereas Boeing stock has a beta of 1.15. If the risk-free interest rate is 3.1% and the expected return of the market portfolio is 10.1%, according to the CAPM. a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 55% intel stock and 45% Boeing stock? d. What is the expected retum of a portfolio that consists of 55% Intel stock and 45% Boeing stock? (There are two ways to solve this.) a. What is the expected return of Intel stock? Inter's expected return is %. (Round to one decimal place.)
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