$6$

$.$

$$You are given the following information:

$$ Return on three

$-$

month T

$-$

bills

$=$

$6$

$\%$

$$ Expected return on S&P

$5$

$0$

$0$

$=$

$9$

$\%$

Draw the security

$-$

market line.

Calculate the expected rate of return on a stock with a beta equal to

$1$

$.$

$5$

$.$