CAPM assumes that only market risk matters, unsystematic risk does not matter in asset pricing.

Question 9 options:

	True
	False

If a stock with 0.40 beta has a risk premium of 11%, find out the market's return assuming zero risk-free rate. 27.5% 11.4% None of the above 4.4% Question 2 (1 point) MyBook's stock has a beta of 0.22. The T-bill (annual) rate is 0.75%. If the market is expected to go up by 11.5% this year, how much the MyBook stock is expected to move according to CAPM. 4.97% 1.62% 6.62% 3.12\%