Question: Given the following data for a stock: beta = 1.6; risk-free rate = 3%; market rate of return = 14%; and the actual rate of

Given the following data for a stock: beta = 1.6; risk-free rate = 3%; market rate of return = 14%; and the actual rate of return on the stock = 22%. Then the stock is:

above the Security Market Line

it cannot be determined

on the Security Market Line

below the Security Market Line

Which one of the following portfolios has the least amount of systematic risk?

a portfolio consisting of various U.S. Treasury bills

a portfolio that duplicates the overall market

a portfolio comprised of 30 percent cash and 70 percent large-company stocks

a stock portfolio with a portfolio beta of 2.2

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