Question: Given the following information: Expected Return on Stock Market = 18% Treasury Bill return = 3% Inflation = 4% Treasury Bonds = 5% Beta of

Given the following information: Expected Return on Stock Market = 18%

Given the following information: Expected Return on Stock Market = 18% Treasury Bill return = 3% Inflation = 4% Treasury Bonds = 5% Beta of Jeff Corp: 2.2 1) What would be the CAPM predicted Return of Jeff Corp? 2) What would be the Beta of a portfolio of 80% Stock Market and 20% Jeff Corp 3) What would be the Beta of a portfolio with 70% Stock Market, 20% Jeff Corp, and 10% Treasury Bills

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