Question 10 The security market line is: the line depicting the relationship between required returns and the market return the line depicting the relationship between a stock's required returns and its risk the line depicting the relationship between a stock's required returns and a stock's beta None of the choices Question 11 Consider a stock with beta equal to 1.25, a risk-free rate of 1%, and a market return of 7%. What is the expected risk premium of the stock using CAPM? 0.6% 0 7.5% O 8.5% O 9.75% Question 12 Suppose that an investor has an investment in four stocks. The beta of each stock is 0.6, 1.25, 1.2, and 1.4. In the same order, the amounts invested in each stock is $30,000, $25,000, $45.000, and $10,000. What is the portfolio beta? 01.113 1.066 None of the choices 1.000