Suppose the yield on shortterm government securites (percelwed to be risk frec) is about 6%. Suppose also that the expected retum required by the market for a portfollo with a beta of 1.0 is 14.0%. According to the capltal asset pricing modet Required: a. What is the expected return on the market porffolo? (Round your answer to 1 decimal place.) b. What would be the expected return on a zero beta stock? Suppose you consider buying a share of stock at a price of $45. The stock is expected to pay a dividend of $4 next year and to sell then for $47. The stock risk has been evaluated at =0.5. c-1. Using the SML, calculate the falr rate of ceturn for a stock with a =0.5. (Round your answer to 1 decimal place.) c.2. Calculate the expected rate of return, using the expected price and dividend for next year. (found your answer to 2 decimal places.] c.3. Is the stack overpriced or underpriced? Overpriced Underpriced