Problem 12-27 CAPM (LO2) The Treasury bill rate is 3%, and the expected return on the market portfolio Is 14%. According to the capital asset pricing model: a. What is the risk premium on the market? 6. What is the required return on an investment with a beta of 1.8? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an investment with a beta of 0.8 offers an expected return of 8.2%, does it have a positive or negative NPV? d. If the market expects a return of 12.9% from stock X, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places.) % a DOE Market risk premium Return on investment NPV Beta d