Suppose blek stock has a beta of 17 whereas gell stock has


Suppose Blek stock has a beta of 1.7, whereas Gell stock has a beta of 0.96. If the risk free interest rate is 4.2% and the expected return of the market portfolio is 13.4%, according to the CAPM,

a. What is the expected return of Blek stock?

b. What is the expected return of Gell stock?

c. What is the beta of a portfolio that consists of 70% Blek stock and 30% Gell stock?

d. What is the expected return of a portfolio that consists of 70% Blek stock and 30% Gell stock?

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Financial Management: Suppose blek stock has a beta of 17 whereas gell stock has
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