Question: 9 10 points Skipped eBook Print References Problem 12-27 CAPM (LO2) The Treasury bill rate is 4%, and the expected return on the market

9 10 points Skipped eBook Print References Problem 12-27 CAPM (LO2) The

9 10 points Skipped eBook Print References Problem 12-27 CAPM (LO2) The Treasury bill rate is 4%, and the expected return on the market portfolio is 14%. 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 1.4? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place. c. If an investment with a beta of 0.7 offers an expected return of 9.0%, does it have a positive or negative NPV? d. If the market expects a return of 12.0% from stock X, what is its beta? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Market risk premium b. Return on investment C. NPV d. Beta % %

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