Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 7%. Suppose also that the expected rate of return required by the market for a portfolio with a beta of 1 is 14%. According to the capital asset pricing model: a. What is the expected rate of return on the market portfolio? (Round your answer to 2 decimal places.)

Expected rate of return

%

b. What would be the expected rate of return on a stock with = 0? (Round your answer to 2 decimal places.)

Expected rate of return

%