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Problem 12-27 CAPM (LO2) The Treasury bill rate is 7%, and the expected return on the market portfolio is 13%. According to the capital asset

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Problem 12-27 CAPM (LO2) The Treasury bill rate is 7%, and the expected return on the market portfolio is 13%. According to the capital asset pricing model a. What is the nsk premium on the market b. What is the required return on an investment with a beta of 18? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an investment with a beta of 0.5 offers an expected return of 9.4%, does it have a positive or negative NPV? d. If the market expects a return of 112% from stock X, what is its beta? (Do not round Intermediate calculations, Round your answer to 2 decimal places.) a. b. Market nisk premium Return on investment NPV Beta C. d

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