A stock has a beta of 1.48 and an expected return of 17.3 percent.A risk-free asset currently earns 4.6 percent.If a portfolio of the two assets has a beta of .98, then the weight of the stock must be ___ and the risk-free weight must be___.
A) .56; .44
B) .34; .66
C) .44; .56
D) .66; .34
E) .72; .28
Correct Answer:
Verified
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