010. (6 marks) Suppose the yield on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the expected return required by the market for a portfolio with a beta of 0.8 is 1 7%. According to the capital asset pricing a) What is the expected return on the market portfolio? b) What would be the expected return on a zero-beta stock? c) Suppose you consider buying a share of stock at a price of $40. The stock is expected to pay a dividend of $3 next year and to sell then for $41. In what range the stock beta is to conclude it is a good buy