6. You hold a portfolio with the following securities: Security Value Beta Expected Return Able Corporation 20% 3.20 36.0% Baker Corporation 40% 1.60 20.0% Charlie Corporation 40% 0.20 6.0% What is the expected return for the market, according to the CAPM? 7. If a firm sells new stock for $50.00 a share and incurs $5 in flotation costs, and the investors have a required rate of return of 15%, what is the cost of capital? The firm has only $45.00 to invest after transaction cost. 8. Alarm Systems Corporation's preferred stock pays a dividend of $2.80 and sells for $32.00. Alarm Systems Corporation has a marginal tax rate of 40%. What is the cost of preferred financing