Question: please answer 1 and 2. Show the work to solve as well. 1. Based on the CAPM, what return should Jordan expect from a security

 please answer 1 and 2. Show the work to solve as

please answer 1 and 2. Show the work to solve as well.

1. Based on the CAPM, what return should Jordan expect from a security that last year returned 9% with a standard deviation of 12%, a beta of 1.2 , when the overall market return has been 10.2%, and the risk-free rate of return is 3% ? 2. Fantasia is considering the purchase of a preferred stock that pays a fixed dividend of $6 per year. If her required rate of return is 9%, what is the maximum that Fantasia will pay for this stock using the zero-growth dividend model

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