Assume that the risk$-$free rate is $\frac{21}{2}$ percent, the expected return on the market is $9\%$ and that this stock is only $\frac{3}{4}$ as risky as the

market on average. According to CAPM, what is the expected return on this risky asset?

Assume that the risk$-$free rate is $2\%,$ the market risk premium is $7\%$ and this stock is $\frac{11}{2}$ times as risky as the market on average.

According to CAPM, what is the expected return on this risky asset?

If the expected return is $12\%,$ the risk$-$free rate is $3\%$ and the beta is $1\mathrm{.}85,$ what is the risk premium and the rewardio?

RISK PREMIUM $($REWARD$)$

REWARD$-$RISK RATIO