Question: return on the S&P 500 index is 7.7% When the three month treasury bill rate is 0. per year. The Beta for Walmart stock is

return on the S&P 500 index is 7.7% When the three month treasury bill rate is 0. per year. The Beta for Walmart stock is 0.19 and the beta for Apple Computer in Please answer the following question. SML (B) Beta-1 Beta=0 a. In the diagram above, please fill in (A) and (B) with both symbols in the SML and numbers. (1 pt) b. Please calculate the expected return on Walmart stock with an equation. (0.5pt) C. Please calculate the expected return on Apple Computer Inc. stock. (0.5pt) d. In the above diagram, please indicate the corresponding beta and expected return for Walmart and Apple Computer Inc. respectively (1pt) e. There is a portfolio consists of 50% of the market portfolio and 50% of Apple Computer Inc. Stock. What is the expected return on this portfolio? (1pt)

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