The next couple of questions share the following information: Stock BBB has a beta of 1.2 and an expected rate of return of 12%. The risk-free rate of return is 3%.
Given this information, what is the expected rate of return on the market portfolio? (Answer should be in percentage terms. Don't type the % sign. E.g., if your answer is 15.1%, type 15.1.)
Question 22 of 26
4 Points
Same information as the prior question: Stock BBB has a beta of 1.2 and an expected rate of return of 12%. The risk-free rate of return is 3%.
You form a portfolio of Stock BBB and the risk-free asset. If the portfolio has a beta of 0.9, what percentage of your portfolio is in Stock BBB? (Answer should be a percentage, don't type the % sign. If the answer is 30%, type 30.)