HELP has a beta of 0.5. The market return is 12% and the risk-free rate of return is 4%. We expect that HELP will earn a return of 12%. Based upon this information and assuming that we are using the security market line to find required return, which of the following is true?

Multiple Choice

• HELP is the market portfolio

• HELP is fairly valued

• HELP should be purchased

• HELP should be sold