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

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

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

b$.$ What is the required return on an investment with a beta of $1\mathrm{.}5?($Do not round intermediate calculations. Enter your answer as a percent rounded to $1$ decimal place.$)$

c$.$ If an investment with a beta of $0\mathrm{.}7$ offers an expected return of $8\mathrm{.}5\%,$ does it have a positive or negative NPV$?$

d$.$ If the market expects a return of $10\mathrm{.}8\%$ from stock $x,$ what is its beta? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

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