7. Intel stock's expected return is 12% and has a beta of 1.14. T-bill rate is 4% and market expectation from the stock is 16%. What is the expected return if we apply the CAPM model? (7 Points) 13.09% 13.10% 13.11% 13.12% 8. An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 18% and a standard deviation of return of 20%. Stock B has an expected return of 14% and a standard deviation of return of 5%. The correlation coefficient between the returns of A and B is.50. The risk-free rate of return is 10%. The proportion of the optimal risky portfolio that should be invested in stock A is (4 Points) 0% 40% 60% Activate Windows Go to Settings to activate Windo 100% 7. Intel stock's expected return is 12% and has a beta of 1.14. T-bill rate is 4% and market expectation from the stock is 16%. What is the expected return if we apply the CAPM model? (7 Points) 13.09% 13.10% 13.11% 13.12% 8. An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 18% and a standard deviation of return of 20%. Stock B has an expected return of 14% and a standard deviation of return of 5%. The correlation coefficient between the returns of A and B is.50. The risk-free rate of return is 10%. The proportion of the optimal risky portfolio that should be invested in stock A is (4 Points) 0% 40% 60% Activate Windows Go to Settings to activate Windo 100%