A stock has a beta of 1.2 and an expected return of 11.8 percent. A risk free asset currently earns 3.8 percent
1. What is the expected return on a portfolio that's equally invested in the two assets?
2. If a portfolio of the two assets has a beta of .8, what are the portfolio weights?
3. If a portfolio of the two assets has an expected return of 11 percent, what is its beta
4. If a portfolio of the two assets has a beta of 2.4, what are the portfolio weights?