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Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank intermediate calculations. Enter your expected return answers as a percent rounded to 4 decimal places, e.g., 32.1623, and beta answers to 3 decimal places, e.g., 32.161.) be certain to enter "0" wherever required. Do not round

Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank intermediate calculations. Enter your expected return answers as a percent rounded to 4 decimal places, e.g., 32.1623, and beta answers to 3 decimal places, e.g., 32.161.) be certain to enter "0" wherever required. Do not round

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your expected return answers as a percent rounded to 4 decimal places, e.g., 32.1623, and beta answers to 3 decimal places, e.g., 32.161.) X Answer is complete but not entirely correct. Percentage of Portfolio in Asset W Portfolio Portfolio Expected Return Beta % 4.0000 X % 25 6.0750 X % 0.300 50 8.1500 X % 0.600 75 10.2250 X % 0.900 100 12.3000 X % 1.200 125 14.3750 X % 1.500 150 16.4500 X % 1.800
Transcribed Image Text:Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your expected return answers as a percent rounded to 4 decimal places, e.g., 32.1623, and beta answers to 3 decimal places, e.g., 32.161.) X Answer is complete but not entirely correct. Percentage of Portfolio in Asset W Portfolio Portfolio Expected Return Beta % 4.0000 X % 25 6.0750 X % 0.300 50 8.1500 X % 0.600 75 10.2250 X % 0.900 100 12.3000 X % 1.200 125 14.3750 X % 1.500 150 16.4500 X % 1.800
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