Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 4%. Suppose also that the expected rate of return required on the market portfolio is 16%. According to the CAPM and using the SML: Question 5 2 pts Question 2a What is the expected rate of return on the portfolio with =1 ? (If your solution is 13.24%, please enter 0.1324 in the box.) Question 2b What would be the expected rate of return on a stock with =0 ? Suppose you are considering buying a share of stock at $30. The stock is expected to pay a dividend of $2 next year and you expect to sell it then for $31. What is your expected rate of return on this stock? (If your solution is 13.24%, please enter 0.1324 in the box.) Question 8 2 pts Question 2c-2 The stock risk has been evaluated at =0.25. What is its implied expected return using SML? (If your solution is 13.24%, please enter 0.1324 in the box.) Question 9 1pts Question 2c-3 Comparing your expectation with the market evaluation, is the stock overpriced or underpriced