The Treasury bill rate is 5.1%, and the expected return on the market portfolio is...
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The Treasury bill rate is 5.1%, and the expected return on the market portfolio is 11.2%. Use the capital asset pricing model. b. What is the risk premium on the market? (Enter your answer as a percent rounded to 1 decimal place.) c. What is the required return on an investment with a beta of 1.3? (Enter your answer as a percent rounded to 2 decimal places.) d. If an investment with a beta of 0.56 offers an expected return of 8.8%, does it have a positive NPV? e. If the market expects a return of 12.5% from stock X, what is its beta? (Round your answer to 2 decimal places.) b. % C. % Risk premium Required return Does it have a positive NPV? Beta d. e
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