Suppose the yield on short-term government secur es perceved to be ris nskheesabout 4% free is about 4% uppose a so that he expect he market or a lio re n re re o th % Acco direm the capital ass a beta of 1 is 7.0%. According to the capital asset pricing model. 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 S50. The stock is expected to pay a dividend of $5 next year and to sell then for $52. The stock risk has been evaluated at =-05. c-1. Using the SML, calculate the fair rate of return for a stock with a =-05 (Round your answer to 1 decimal place.) Fair rate of return c-2. Calculate the expected rate of return, using the expected price and dividend for next year (Round your answer to 2 decimal places.) Expected rate of return c-3. Is the stock overpriced or underpriced? Underpriced