Problem $12-27$ CAPM $($LO$2)$

$10$ points

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The Treasury bill rate is $6\%,$ and the expected return on the market portfolio is $10\%.$ According to the capital asset pricing model:

a$.$ What is the risk premium on the market?

b$.$ What is the required return on an investment with a beta of $1\mathrm{.}4?$

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $1$ decimal place.

c$.$ If an investment with a beta of $0\mathrm{.}8$ offers an expected return of $9\mathrm{.}0\%,$ does it have a positive or negative NPV$?$

d$.$ If the market expects a return of $11\mathrm{.}0\%$ from stock $x,$ what is its beta?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

$\backslash$table$[[$a$.$ Market risk premium,,$\%$