Qu 6 D) What is the expected return on the market if the expected return on Asset A is 15%, the risk-free rate is 6% and Asset A has a beta of 0.9? Beta Use the following information to answer parts ii) and 11) Security Return Standard Deviation A 12% 16% B 10% 79 Treasury Bills 7% 0.8 0.6 i) What is the risk premium for Security A? m) If you were to form a portfolio consisting of 20% invested in Security A, 30% invested in Security B and the remainder in the risk-free rate, what would be the expected return on the portfolio? b) Welles Lid wants to sell preference shares at $7 per share. A very similar issue of preference shares having similar risk characteristics already on issue has a price of $3 per share and offers a dividend of 0.15 every year. What dividend will Welles Ltd have to offer if the preference shares are going to sell? E is