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5 Shares in M and N lie on the security market line. a What is the riskless rate of return and the risk premium on

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5 Shares in M and N lie on the security market line. a What is the riskless rate of return and the risk premium on the market index portfolio? b Share P has an expected return of 30 per cent and a beta of 1.7. What is likely to happen to the price and return on shares in P ? c Share Q has an expected return of 10 per cent and a beta of 0.8. What is likely to happen to the price and returns on a share in

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