Asset W has an expected return of 13.90 percent and a beta of 1.43. If the risk-
ID: 2696983 • Letter: A
Question
Asset W has an expected return of 13.90 percent and a beta of 1.43. If the risk-free rate is 4.68 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Do not include the percent signs (%). Leave no cells blank - be certain to enter "0" wherever required. Round your portfolio expected return answers to 2 decimal places (e.g., 32.16). Round your portfolio beta answers to 3 decimal places (e.g., 32.161).)
Percentage of Portfolio Portfolio Portfolio in Asset W Expected Return Beta 0% % 25 % 50 % 75 % 100 % 125 % 150 %Explanation / Answer
Beta of risk free = 0
Return Beta
for weight of 0% = 4.68% 0
25% 6.985% 0.358
50% = 9.29% 0.715
75% = 11.6% 1.073
100% = 13.9% 1.43
125% = 16.205% 1.788
150% = 18.51% 2.145