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 $1\mathrm{.}0$ is $9\mathrm{.}0\%.$ According to the capital asset pricing model:

Required:

a$.$ What is the expected return on the market portfolio? $($Round your answer to $1$ decimal place.$)$

Expected rate of return

$\%$

b$.$ What would be the expected return on a zero$-$beta stock?

Expected rate of return

$\%$

Suppose you consider buying a share of stock at a price of $$90.$ The stock is expected to pay a dividend of $$12$ next year and to sell

then for $$93.$ The stock risk has been evaluated at $=-0\mathrm{.}5.$

c$-1.$ Using the SML$,$ calculate the fair rate of return for a stock with a $=-0\mathrm{.}5.($Round your answer to $1$ decimal place.$)$

Just answer the second part please