5.If the expected return on State Farm from the Capital Asset Pricing Model (the CAPM) is 0.20, and if the risk free rate of interest is 0.05, and if the expected return on the market portfolio is 0.20, then which of the following comes closest to State Farms beta?

A. 0.50

B. 0.00

C. 1.50

D. 1.00

6. From CAPM, a stock with a beta equal to zero has an expected return equal to what?

	A.	One-half the expected return on the market portfolio.
	B.	The difference between the risk free rate of return and the market portfolio.
	C.	The risk-free rate of return.
	D.	The expected return on the market.

PLEASE ANSWER ALL QUESTIONS