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asap MRP ECRM)-R &Th-Graph of the CAPM, 15 points. fer to the graph below to answer the next below to answer the next 4 questions

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MRP ECRM)-R &Th-Graph of the CAPM, 15 points. fer to the graph below to answer the next below to answer the next 4 questions 58. rate? 6 points. What is the Risk-free 600% 13 50 2.00% 59. points. What is the Expected Return on the Market? 0.25 0.5 075 i 1.25 15 125 |Risk Premium? 60. 3 points. What is the Market 61. 4 points. If a stock with a Beta of 1.5 has a return of OS, is the stock overvalue or undervalued, Should you buy or short the stock? BONUS ax points 6. Each question is worth 6 points. All or nothing-no partial credit. You must get the correct answ ceive credit. You can try both but can only receive credit for 1. us #1 You will borrow $25,000 to buy a car. If your interest rate is 5% on a 4-year loan, what is your month! ment? s#2 What is the value of a bond with a 6% coupon rate, 12 years to maturity and a yield of 5.5%. Coup emi-annually

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