Beta coefficients and the capital asset pricing model Nikki Valdez is wondering how much risk she must undertake to generate an acceptable return on her portfolio. The risk-free retuen currently is 5%. The return on the average stock (market return) is 6%. Use the CAPM to calculate the beta coefficient associated with each of the following portfolio returns. a. 10% b. 15% c. 18% d. 20% e. Nikki is risk averse. What is the highest return she can expect if she is unwilling to take more than an average risk?