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
5
0
0
=
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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