Question: Problem 1. Beta and Expected Return (2 points) Suppose the risk free return is 3.04% and the market portfolio has an expected return of 9%

Problem 1. Beta and Expected Return (2 points) Suppose the risk

Problem 1. Beta and Expected Return (2 points) Suppose the risk free return is 3.04% and the market portfolio has an expected return of 9% and a volatility of 15%. The share of Unilever has a 30% volatility and a correlation with the market of 0.33 . Question 1. (1 point) What is the beta of the share of Unilever with respect to the market? Question 2. (1 point) If CAPM holds, what is its expected return of the share of Unilever

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