Question: The treasury bill rate is 4% and the expected return on the market portfolio is 11%. According to the capital asset pricing model: What is

The treasury bill rate is 4% and the expected return on the market portfolio is 11%. According to the capital asset pricing model:

  1. What is the risk premium on the market?
  2. What is required return on an investment with a beta of 1.6?
  3. If an investment with a beta of 0.8 offers an expected return of 8.6%, does it have a positive or negative NPV?
  4. If the market expects a return of 11.0% from stock x what is its beta?

Market Risk Premium %

Return on Investment %

NPV -----

Beta -----

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