Return to Suppose the yield on short-term government securities (perceived to be risk-free) is about 4% Suppose also that the expected return required by the market for a portfolio with a beta of 1is 8.0% According to the capital asset pricing model: a. What is the expected return on the market portfolio? (Round your answer to 1 decimal place.) Answer is complete and correct. Expected rate of return 80 b. What would be the expected return on a zero beta stock? Answer is complete and correct. Expected rate of retum have completed so far. It does not indicate compli Help Suppose you consider buying a share of stock at a price of $70. The stock is expected to pay a dividend of $9 next year and to sell then for $73. The stock risk has been evaluated at B ---0.5 C-1. Using the SML, calculate the fair rate of return for a stock with a B = -05. (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.) Answer is not complete. Expected rate of return %