Suppose Intel Stock Has A Beta Of 1 79 Whereas Boeing Stock Has A Beta Of 0 79 If The Risk Free Interest Rate Is 3 3 1 (10.29 KiB) Viewed 20 times
Suppose Intel Stock Has A Beta Of 1 79 Whereas Boeing Stock Has A Beta Of 0 79 If The Risk Free Interest Rate Is 3 3 2 (18.44 KiB) Viewed 20 times
Suppose Intel stock has a beta of 1.79, whereas Boeing stock has a beta of 0.79. If the risk-free interest rate is 3.3% and the expected return of the market portfolio is 10.4%, 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 60% Intel stock and 40% Boeing stock? d. What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock? (There are two ways to solve this.)
a. What is the expected return of Intel stock? Intel's expected return is%. (Round to one decimal place.) b. What is the expected return of Boeing stock? Boeing's expected return is%. (Round to one decimal place.) c. What is the beta of a portfolio that consists of 60% Intel stock and 40% Boeing stock?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!