Asset W has an expected return of 12.6 percent and a beta of 1.25. If the risk-free rate is 4.6 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g., 32.161.) Percentage of Portfolio in Asset W 0% 25 50 75 100 125 150 Portfolio Expected Return % % % % % % % Portfolio Beta
Asset W has an expected return of 12.6 percent and a beta of 1.25. If the risk-free rate is 4.6 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g., 32.161.) Percentage of Portfolio in Asset W 0% 25 50 75 100 125 150 Portfolio Expected Return % % % % % % % Portfolio Beta
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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Question
Transcribed Image Text:Asset W has an expected return of 12.6 percent and a beta of 1.25. If the risk-free rate is
4.6 percent, complete the following table for portfolios of Asset W and a risk-free asset.
(Leave no cells blank be certain to enter "0" wherever required. Do not round
intermediate calculations. Enter your expected returns as a percent rounded to 2
decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g., 32.161.)
Percentage of Portfolio
in Asset W
0%
25
50
75
100
125
150
-
Slope of the line
Portfolio
Expected Return
%
%
%
%
%
%
%
If you plot the relationship between portfolio expected return and portfolio beta, what is
the slope of the line that results? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Portfolio
Beta
%
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