6. Consider the CAPM. The risk-free rate is 4%, and the expected return on the market is 11%, what is the expected retum on a stock with a beta of07? A. 4% B. 8.9% C. 9.15% D. 12.4% 7, consider the CAPM. The risk-free rate is 5%, and the expected return on the market is 12%. What is the closest to the beta on a stock with an expected return of 9%? A. 0.87 B. 0.28 C. 0.57 D. 1.2 8. According to the capital asset pricing model, a security with a A. positive alpha is considered a good candidate to sell short B. positive alpha is considered overpriced C. negative alpha is considered underpriced D. zero alpha is considered to be fairly priced 9. According to the CAPM, investors should only be compensated for bearing A. unsystematic risk B. firm-specific risk C. residual risk D. systematic risk