a Compute the expefted rate of return for Intel common stock, which has a 1.4 beta. The risk-free rqfe is Apercent and tt/e mfarket portfolio (composed of New / ork S(ock Exchange tocks) has an enpeqtegreturn of 12 percent. 1. Why is the rate you computed the expected rate? The expecte rate of ieturn for Intel common spok is (Round to pre de fimal plece.) T. Whe rate is is the ran an expected gedause the CAPM provides a theory of hove-sk and expected return are connected ontrated off in the eapital markets. True/False (Select from the drop-down menu.) 8. (Expected rate of return using CAPM) a. Compute the expected rate of return for Acer common stock, which has a 1.5 beta. The risk-free rate is 6 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 13 percent. b. Why is the rate you computed the expected rate? a. The expected rate of return for Acer common stock is (Round to one decimal place.) b. Why is the rate you computed the expected rate? The rate is fair and expected because the CAPM provides a theory of how risk and expected return are connected or traded off in the capital markets. True/False (Select from the drop-down menu.) 9. (Capitap Asset Pricing Model) Johnson Manufacturing, Inc., is considering several investments. The rate An T elasury bills is cyrrently 5.5 percent, and the expected retum for the market is 11 pereent. What