Question: 6 . You are given the following information: Return on three - month T - bills = 6 % Expected return on S&P 5 0

6. You are given the following information:
Return on three-month T-bills =6%
Expected return on S&P 500=9%
Draw the security-market line.
Calculate the expected rate of return on a stock with a beta equal to 1.5.

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