Suppose the rate of return on short-term government securities (percelved to be risk-free) is about 8%. Suppose also that the expected rate of return required by the market for a portlolio with a beta of 1 is 16%. According to the capital asset pricing model: Required: a. What is the expected rate of return on the market portfolio? Note: Round your answer to 2 decimal ploces. b. What would be the expected rate of return on a stock with =0 ? Note: Round your answer to 2 decimal places. c. Suppose you consider buying a share of stock at $57. The stock is expected to pay $3.5 dividends next year and you expect it to sell then for $60. The stock risk has been evaluated at =0.5. Is the stock overpriced or underpriced