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1. Use the following information to answer the questions. Security Beta Standard Deviation Expected return Market 1.0 20% 10.0% Risk-free 0.0 0% 4.0% Stock A

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1. Use the following information to answer the questions. Security Beta Standard Deviation Expected return Market 1.0 20% 10.0% Risk-free 0.0 0% 4.0% Stock A 0.8 15% ()% Stock B O 30% 14.0% Stock C 1.2 25% ()% Stock D 2.0 40% ( ) % 1) Figure out the expected return for Stock A using CAPM. 2) Figure out the beta for Stock B using CAPM

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