a. Suppose the required rate of return on a portfolio with a beta of 1.2 is 18 percent and the risk-free rate is 6 percent. i. What is the expected rate of return on the market portfolio? ii. What is the expected return of a zero beta security? Suppose you choose to buy a stock Z for $ 50. The stock is expected to pay $ 2 as dividend next year and is hope to sell at $ 53. The stock has been evaluated at beta is -0.5. Is the stock is fairly priced? What is the implication of including stock Z in the portfolio? iv. A stock delta, with beta of 1.5, sells for $ 50. One year from now, it is expected to yield a dividend income of $ 6. What price do investors expect after one year