E (R) SML 15.5% 5% 1.5 B (a) What is the Expected Return for a security with a Beta of 1.2? I (b) If a mutual fund manager also has a portfolio with a Beta of 1.2, and expects his portfolio to earn a rate of return of 10 percent, is it a good idea to invest? Why? (c) If you had a stock with a Beta of 1.5 and it paid you a $2 in dividends, and you expected the price to be $100 in a year, what would you pay for the stock today?