Question: The Treasury bill rate is 4%, and the expected return on the market portfolio Is 13%. According to the capital asset pricing model: a. What

The Treasury bill rate is 4%, and the expected return on

The Treasury bill rate is 4%, and the expected return on the market portfolio Is 13%. According to the capital asset pricing model: a. What is the risk premium on the market? b. What is the required return on an Investment with a beta of 1.8? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an Investment with a beta of 0.9 offers an expected return of 8.3%, does It have a positive or negative NPV? d. If the market expects a return of 11.2% from stock X, what Is Its beta? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) a. Market risk premium Return on investment NPV Beta

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