Suppose the yield on short term government securities perceived to be risk free) is about 6%. Suppose also that the expected retum required by the marice for a portfolio with a beta of 10 is 12.0%. 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 the film X b. What would be the expected return on a zero beta stock? Expected the allum Suppose you consider buying a share of stock at a price of $85. The stock is expected to pay a dividend of $11 next year and to set then for $98. The stock risk has been evaluated at 3 = -0.5. 01. Using the SML, calculate the fair rate of return for a stock with a p =-0.5 (Round your answer to 1 decimal place.) 1 Fait rate of return 2. Calculate the expected rate af return, using the expected price and dividend for next year. (round your answer to 2 decimal places.) Expected to folum c-3. Is the stock overpriced or underpriced? Overpriced Underpriced