(Expected rate of return using CAPM) a. Compute the expected rate of return for Acer common stock, which has a 1.7 beta. The risk-free rate is 7 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 12 percent. b. Why is the rate you computed the expected rate? lec ng Scu (Security market line) Your father just learned from his financial advisor that his retirement portfolio has a beta of 1.72. He has turned to you to explain to him what this means. Specifically, describe what you would expect to happen to the value of his retirement fund if the following were to occur a. The value of the market portfolio rises by 10 percent. b. The value of the market portfolio drops by 10 percent c. Is your father's retirement portfolio more or less risky than the market portfolio? Explain. AW Jeo quiz ngage 4 scussion Ingaged