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
Related questions
Question
11.9

Transcribed Image Text:Asset W has an expected return of 13.15 percent and a beta of 1.28. If the risk-free rate is
4.53 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 portfolio expected return answers as a percent
rounded to 2 decimal places, e.g., 32.16. Enter your portfolio beta answers rounded to
3 decimal places, e.g., 32.161.)
X Answer is not complete.
Percentage of
Portfolio in Asset W
Portfolio
Portfolio
Expected Return
Beta
%
4.53
%
25
2.20
%
50
43.55 X %
75
65.10 X %
100
86.65 X
%
125
108.20 X %
150
129.75 X
%
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