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?