Assume that the CAPM holds. The risk-free rate is r_f =4%. The expected return on the market portfolio is r_m=10% and the volatility of the market portfolio is _m=20%.

The covariance between the return of Apple's stock and that of the market portfolio is 0.048.

A)

What is the beta of Apple's stock?

Group of answer choices

0.6

0.8

1.0

1.2

b)

What is the expected return of Apple's stock?

Group of answer choices

11.2%

12.5%

14.8%

16.0%