Question: Question 4 5 pts Assume that CAPM is valid. A share of stock is now selling for $80. It will pay a dividend of $5

 Question 4 5 pts Assume that CAPM is valid. A share

Question 4 5 pts Assume that CAPM is valid. A share of stock is now selling for $80. It will pay a dividend of $5 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 6% and the expected rate of return on the market portfolio is 14%. (Round your answer to 2 decimal places.) Question 5 4 pts Suppose the yield on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the expected return required by the market for a portfolio with a beta of 1 is 8.0%. According to the capital asset pricing model: What is the expected return on the market portfolio? (Enter your answer as a decimal rounded to 3 decimal places.) Question 6 4 pts Suppose the yield on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the expected return required by the market for a portfolio with a beta of 1 is 8.0%. According to the capital asset pricing model: What would be the expected return on a zero-beta stock? (Enter your answer as a decimal rounded to 3 decimal places.)

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