Stock J has a beta of 1.31 and an expected return of 13.71 percent, while Stock K has a beta of 0.86 and an expected return of 10.65 percent. You want a portfolio with the same risk as the market.
Requirement 1: |
What is the portfolio weight of each stock? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).) |
Requirement 2: |
What is the expected return of your portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
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Expected return of the portfolio |
% |