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Consider the following information: Portfolio Expected Return Beta Risk-free 7 % 0 Market 12.2 1.0 A 11.0 1.6 a. Calculate the return predicted by CAPM

Consider the following information:

Portfolio	Expected Return		Beta
Risk-free	7	%	0
Market	12.2		1.0
A	11.0		1.6

a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.6. (Round your answer to 2 decimal places.)

b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)

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