Question: The Treasury bill rate is 3.7%, and the expected return on the market portfolio is 11.4%. Use the capital asset pricing model. a. What is

The Treasury bill rate is 3.7%, and the expected return on the market portfolio is 11.4%. Use the capital asset pricing model.

a. What is the risk premium on the market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Risk premium %

b. What is the required return on an investment with a beta of 1.2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Required return %

c. If an investment with a beta of .58 offers an expected return of 9.2%, does it have a positive NPV?

	No
	Yes

d. If the market expects a return of 11.6% from stock X, what is its beta? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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