EXERCISE 2: SML 1. Assume the risk-free rate is 4.5 percent and the expected return on the market is 11 per cent. You anticipate Stock XYZ to sell for $28 at the end of next year and pay a dividend of $2. The stock is currently selling for $26.50 with a beta of 1.2. You currently hold stock XYZ in a well-diversified portfolio. What should you do stock XYZ