In 1999 the rate of return on short-term government securities (perceived to be risk- free) was about 5%. Suppose the expected rate of return required by the market for a portfolio with a beta of 1 is 12%. According to the capital asset pricing model (security market line): a What is the expected rate of return on the market portfolio? b. What would be the expected rate of return on a stock with = 0? C. Suppose you consider buying a share of stock at $40. The stock is expected to pay $3 dividends next year and you expect it to sell then for $41. The stock risk has been evaluated at B = -.5. Is the stock overpriced or underpriced