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1. Suppose the return on a riskless asset is 4% and the market risk premium is 7%, According to the CAPM, a stock with a

1. Suppose the return on a riskless asset is 4% and the market risk premium is 7%, According to the CAPM, a stock with a beta of 0.5 will have an expected return of:

2. A stock has a beta of 1.2. The return on a riskless asset is 3% and the expected return on the market portfolio is 11%. What is the stock's expected return according to the CAPM?

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