1. Consider the CAPM. The risk-free rate is 1.75% and the expected return on the market is 7.55%. What is the expected return on a stock with a beta of 0.9 ? A. 6.80% B. 6.97% C. 7.15% D. 8.55% 2. If you are a well-diversified investor with 100 stocks in your portfolio, what type of risk you don't really have to worry about much any longer? A. total risk B. systematic risk C. market driven risk D. firm specific risk 3. If DPZ stock has a Beta of 1.80 , had a return of 21% over the past year, while Market Return was 14% and Rf was 1.5%, what must have been DPZ's Jehnsen Alpha? A. 0% B. 2.70% C. 2.70% D. 3.00% E. 3.00% F. 7.00% G. 10.00% 4. According to the capital asset pricing model, fairly priced securities must A. have positive betas B. have positive alphas C. plot right on the SML D. plot above RM