Suppose Intel stock has a beta of 1.42, whereas Boeing stock has a beta of 0.94. If the risk-free interest rate is 3.8% and the expected return of the market portfolio is 11.3%, 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 65% Intel stock and 35% Boeing stock?
d. What is the expected return of a portfolio that consists of 65% Intel stock and 35% Boeing stock? (There are two ways to solve this.)