Answer 1-5

Use the following to Answer questions 1-5: return SML 15% 10% beta What is Risk free rate? ( 6pts) 1. What is the expected return on the market? 2, What t is the beta for a portfolio with an expected return of 12.5%? (6 pts) 3. What is the expected return for a portfolio with a beta of 0.5? (6pts) (3 pts) 4. What is the alpha of a portfolio with a beta of 2 and actual return of 15%? 5. Is the portfolio in Q4 overpriced or underpriced? (3 pts)