Using CAPM Suppose that CAPM holds, and so E(r;) = r, +B; *(E(rw)-r.) The expected market return (S&P500) is 14% and T-bill rate (risk-free) is 5%. - What is the expected return on a stock with B = 0? - What is the expected return on a stock with B = 1? What is the expected return on a portfolio made up of 50% T- bills and 50% market portfolio? - What is the expected return on stock with = -0.1? What sort of firm is this