Question: QUESTION 1 1.2 points Save Answer Assume that a security is fair|y priced and has an expected rate of return of 0.1 7. The market

QUESTION 1 1.2 points Save Answer Assume that a
QUESTION 1 1.2 points Save Answer Assume that a security is fair|y priced and has an expected rate of return of 0.1 7. The market expected rate of return is 0.11. and the risk-free rate is 0.04. The beta of the stock is O 1. O 0.95. O 1.86. O 1.25. QUESTION 2 1.2 no ts Save Answer The riskfree rate and the expected market rate of return are 0.056 and 0.125. respectively. According to the capital asset pricing model (CAPM). the expected rate of return on a security with a beta of1.25 is equal to O 0.144. o 0.134, O 0.153. o 0.142. o 0.117

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