Question: Find the expected return on a stock given that the risk-free rate is 5%, the expected return on the market portfolio is 10%, and the

  1. Find the expected return on a stock given that the risk-free rate is 5%, the expected return on the

market portfolio is 10%, and the beta of the stock is 2.

2) Find the beta value on a stock given that its expected return is 17%, the risk-free rate is 6%, and the expected return on the market portfolio is 13%.

3) The risk-free rate is 4 percent. The expected market rate of return is 10 percent. If you expect stock X with a beta of 2.25 to offer a rate of return of 16 percent, what should you do on stock X?

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