Asset W has an expected return of 10.8 percent and a beta of 1.25. If the risk-f

Question

Asset W has an expected return of 10.8 percent and a beta of 1.25. If the risk-free rate is 3.4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Round your expected return answers to 2 decimal places. (e.g., 32.16) and beta answers to 3 decimal places. (e.g., 32.161))

If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results? (Round your answer to 2 decimal places. (e.g., 32.1616))

Asset W has an expected return of 10.8 percent and a beta of 1.25. If the risk-free rate is 3.4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Round your expected return answers to 2 decimal places. (e.g., 32.16) and beta answers to 3 decimal places. (e.g., 32.161))

Explanation / Answer

If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results? (Round your answer to 2 decimal places. (e.g., 32.1616))

Percentage of Portfolio Portfolio Portfolio in Asset W Expected Return Beta 0 3.4 0 25 5.25 0.3125 50 7.1 0.625 75 8.95 0.9375 100 10.8 1.25 125 12.65 1.5625 150 14.5 1.875

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