on ehon-tern gommnt ecumties berceven to be rask-roo)is about el. Suppose also that the axpectec return requred by the market for a portolc with a beta of 1 is 130%. Acording tothe capital asset prang model: a. What is the expected retum on the market portfolio? (Round your answer to 1 decimal place.) Expected rate of return b. What would be the expected return on a zero-beta stock? Expected rate of return Suppose you consider buying a share of stock at a price of $25. The stock is expected to pay a dividend of $6 next year and to sell then for $26. The stock risk has been evaluated at 8--0.5 C-1. Using the SML, calculate the fair rate of return for a stock with a -0.5. (Round your answer to 1 decimal place.) Fair rate of return c-2 Calculate the expected rate of return, using the expected price and dividend for next year. (Round your answer to 2 decimal places.) Expected rate of return c-3. Is the stock overpriced or underpriced? Overpriced