#1. Answer both of the following: Consider the following information: the risk-free rate is 3%, and the expected rate of return on the market portfolio is 9%. If you have a stock with a beta of +1.5, and you expect it to offer a rate of return of 12%, what should you do? If the Treasury bill rate is currently 2%, and the expected return to the market portfolio over the same period is 8%, determine the risk premium on the market. If the standard deviation of the return on the market is 10%, what is the equation of the Capital Market Line