The Treasury bill rate is 7%, and the expected return on the market portfolio is 11%. According

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The Treasury bill rate is 7%, and the expected return on the market portfolio is 11%. According to the capital asset pricing model:

a.What is the risk premium on the market?

b.What is the required return on an investment with a beta of 1.6?(Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

c.If an investment with a beta of 0.9 offers an expected return of 9.2%, does it have a positive or negative NPV?

d.If the market expects a return of 11.8% from stock X, what is its beta?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Posted Date: May 18, 2024 09:13 PM

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The Treasury bill rate is 7%, and the expected return on the market portfolio is 11%. According

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