Here are data on Afterpay and ZIP shares. swered t of Firm Afterpay ZIP Forecast return 11% 9% uestion Standard deviation of returns 14% 12% Market Beta 1.5 11.2 The T-bill rate is 3% and the risk premium on the ASX-200 index as a proxy for the market is 6%. a. Draw the Security Market (SML) line. (Hint: You only need two points to draw the line.] b. What is the expected rate of return for Afterpay, according to the capital asset pricing model (CAPM)? Now, suppose we are in an economy with two independent economic factors, Inflation and Industrial Production. The risk-free rate is 3%. Vanguard has formed two portfolios, Value and Growth, which are both well-diversified and have the following properties. Portfolio Expected Return Beta on Inflation Beta on Industrial factor Production factor Value 40% 1.8 22 Growth 20% 2 0.5 54% +14.1K/s C. What is the expected return-eta relationship in this economy? d. In this two-factor economy, we would like to price Afterpay share. The Afterpay share has the inflation bet of K TO TOP 1.6 and the industrial Production beta of 0.8. What is the expected return of Afterpay in this economy? Here are data on Afterpay and ZIP shares. swered t of Firm Afterpay ZIP Forecast return 11% 9% uestion Standard deviation of returns 14% 12% Market Beta 1.5 11.2 The T-bill rate is 3% and the risk premium on the ASX-200 index as a proxy for the market is 6%. a. Draw the Security Market (SML) line. (Hint: You only need two points to draw the line.] b. What is the expected rate of return for Afterpay, according to the capital asset pricing model (CAPM)? Now, suppose we are in an economy with two independent economic factors, Inflation and Industrial Production. The risk-free rate is 3%. Vanguard has formed two portfolios, Value and Growth, which are both well-diversified and have the following properties. Portfolio Expected Return Beta on Inflation Beta on Industrial factor Production factor Value 40% 1.8 22 Growth 20% 2 0.5 54% +14.1K/s C. What is the expected return-eta relationship in this economy? d. In this two-factor economy, we would like to price Afterpay share. The Afterpay share has the inflation bet of K TO TOP 1.6 and the industrial Production beta of 0.8. What is the expected return of Afterpay in this economy