Portfolio Expected Return Beta A 12 1 1 B 11 1 2 C 10 8 D 08 55 Based on the table above, which of the following statements must be true All rational investors would prefer portfolio A over portfolio D Portfolio D must have the lowest standard deviation Portfolio B is inefficient None of the above b Zeta stock has a 10 required return and a beta of 1 25 The risk free rate is 3 Find the return on the market portfolio Round intermediate steps and your final answer to four decimals and enter your answer in decimal format

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Question: Portfolio Expected Return Beta A .12 1.1 B .11 -1.2 C .10 .8 D .08 .55 Based on the table above, which of the following

Portfolio	Expected Return	Beta
A	.12	1.1
B	.11	-1.2
C	.10	.8
D	.08	.55

Based on the table above, which of the following statements must be true?

		All rational investors would prefer portfolio A over portfolio D.
		Portfolio D must have the lowest standard deviation.
		Portfolio B is inefficient.
		None of the above

b/ Zeta stock has a 10% required return and a beta of 1.25. The risk-free rate is 3%. Find the return on the market portfolio. Round intermediate steps and your final answer to four decimals and enter your answer in decimal format

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