The security market line (SML)

c. If a fund representative states that their fund should have a long-term expected rate of return of 10%, how should you obtain it?

d. Another fund representative tells you that the beta coefficient of a stock the fund is interested in purchasing is 1.25, what would the stock be expected to earn?

e. If the same fund representative states that they would like to earn a minimum of 11% on that stock, would you advise him to purchase the stock?