Suppose the expected return on a zero$-$beta stock is $5\%$ and the expected return on a portfolio with a beta of $1$ is $12\mathrm{.}0\%.$

Suppose you consider buying a share of stock at a price of $$20.$ The stock is expected to pay a dividend of $$5$ next year and to sell then for $$21.$ The stock $\backslash$beta is $0\mathrm{.}5.$