Problem 5

Problem 4 Intro Assume that the CAPM holds. One stock has an expected return of 8% and a beta of 0.6. Another stock has an expected return of 12% and a beta of 1.5. Part 1 | Attempt 1/99 for 10 pts. What is the reward-to-risk ratio? 4+ decimals Submit Intro Use the expected return-beta equation from the CAPM. Part 1 IB | Attempt 1/99 for 10 pts. What is the expected return for a stock if the risk-free rate is 4%, beta 0.6 and the expected return for the market portfolio is 8%? 3+ decimals Submit Part 2 - Attempt 1/99 for 10 pts. What is the expected return for the market if the risk-free rate is 4%, beta 0.6 and the expected return for a stock 12%? 3+ decimals Submit