5. The covariance between security A and market portfolio is 0.04. The expected return of market portfolio is 8%, the variance of market portfolio is 0.01. Risk-free rate is 3%. 5.1 Beta of security A is A multiple-choice question with one possible answer.(Required) 2 0.5 0.25 1 4

5.2 The expected return of A is A multiple-choice question with one possible answer.(Required)

5.5% 23% 13% 4.25% 8%

6. If security A' expected return lies below the security market line (SML), this means security is underpricing. A question requiring a 'True/False' answer.(Required) True/False