Suppose intel stock has a beta of 0.80, whereas Boeing stock has a beta of 1.15. If the risk-free interest rate is 3.1% and the expected retum of the market portfolio is 10.1%, according to the CAPM. a. What is the expected retum of Intel stock? b. What is the expected return of Boeing stock? e. What is the bota of a portfolio that consists of 55% Intel stock and 45% Boeing stock? d. What is the expected return of a portfolio that consists of 56% Intel stock and 45% Boeing stock? (There are two ways to solve this.)
Suppose intel stock has a beta of 0.80, whereas Boeing stock has a beta of 1.15. If the risk-free interest rate is 3.1% and the expected retum of the market portfolio is 10.1%, according to the CAPM. a. What is the expected retum of Intel stock? b. What is the expected return of Boeing stock? e. What is the bota of a portfolio that consists of 55% Intel stock and 45% Boeing stock? d. What is the expected return of a portfolio that consists of 56% Intel stock and 45% Boeing stock? (There are two ways to solve this.)
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 25P
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Please help me with this one values are as follows its 0.89,1.15, 3.1% and 10.1%.pls do all parts
![Suppose Intel stock has a beta of 0.89, whereas Boeing stock has a beta of 1.15. If the risk-free interest rate is 3.1% and the expected return of the market portfolio is 10.1%, 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 55% intel stock and 45% Boeing stock?
d. What is the expected retum of a portfolio that consists of 55% Intel stock and 45% Boeing stock? (There are two ways to solve this.)
a. What is the expected return of Intel stock?
Inter's expected return is %. (Round to one decimal place.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedde3d13-ac86-44a1-9b63-66e8ea5cf24d%2F890421a2-9813-4f6c-94ad-1533647869df%2Fohsr2no_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose Intel stock has a beta of 0.89, whereas Boeing stock has a beta of 1.15. If the risk-free interest rate is 3.1% and the expected return of the market portfolio is 10.1%, 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 55% intel stock and 45% Boeing stock?
d. What is the expected retum of a portfolio that consists of 55% Intel stock and 45% Boeing stock? (There are two ways to solve this.)
a. What is the expected return of Intel stock?
Inter's expected return is %. (Round to one decimal place.)
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