Question: The Treasury bill rate is 3.9%, and the expected return on the market portfolio is 10.6%. Use the capital asset pricing model. What is the

The Treasury bill rate is 3.9%, and the expected return on the market portfolio is 10.6%. Use the capital asset pricing model.

  1. What is the risk premium on the market? (Enter your answer as a percent rounded to 1 decimal place.)

  2. What is the required return on an investment with a beta of 1.5? (Enter your answer as a percent rounded to 2 decimal places.)

  3. If an investment with a beta of 0.56 offers an expected return of 8.2%, does it have a positive NPV?

  4. If the market expects a return of 11.1% from stock X, what is its beta? (Round your answer to 2 decimal places.)

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