Question: Please give the process, thanks~ Suppose the yleld on short-term government securities (percelved to be risk-free) is about 4%. Suppose also that the expected return

Please give the process, thanks~
Please give the process, thanks~ Suppose the yleld on short-term government securities
(percelved to be risk-free) is about 4%. Suppose also that the expected

Suppose the yleld on short-term government securities (percelved to be risk-free) is about 4%. Suppose also that the expected return required by the market for a portfolio with a beta of 1 is 7.0%. According to the capital asset pricing model: a. What is the expected return on the market portfolio? (Round your answer to 1 decimal place.) b. What would be the expected return on a zero-beta stock? Suppose you consider buying a share of stock at a price of $50. The stock is expected to pay a dividend of $5 next year and to sell then for $52. The stock risk has been evaluated at =0.5. c-1. Using the SML, calculate the fair rate of return for a stock with a =0.5. (Round your answer to 1 decimal place.) Suppose you consider butying a shere of stock et a price of $50. The stock is expected to pay a dividend of 55 next yees end to sell then for 552. The stock risk has been evaluated at =0.5 c1. Using the SML, caiculete the fair rate of return for a stock with a =0.5. (Round your answer to 1 decimat place.) c-2. Colculate the expected rate of return, using the expected price and dividend for nent yeor. (Round your answer to 2 decimat places.) c-3. is the stock overpriced or underpriced? Underpreed Overpelced

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