In 1985, the return on the short-term bonds issued by the US government was 6%. Suppose that the expected return on the market for a portfolio with a Beta of 2 was 30%. Questions: 1. Under the CAPM, what is the expected return of the market portfolio? 2. One share of the company Tenjin was sold for $40. At that moment, an analyst predicted a dividend of $3 for 1988 and a sell price of $41. Say that -0.4, if we are to believe the analyst's predictions, was the share over or under-valued