Problem $7\mathrm{.}25$

Suppose the yeld on shon$-$term government securties $($percelved to be risk$-$free$)$ is about $5\%$ Suppose also that the expected rehim required by the market for a porfalo weh a beta of $1$ is $12$ OK According to the capral asset pricing model

Expecied rabe ol retum

b$.$ What would be the expecied iefum on a zerobela noci?

Expecied trine of retim then for $$21$ The llock mik has been evalueded an D $=-0\mathrm{.}5$

In mentrom