Suppose the yield on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the expected return required by the market for a portfolio with a beta of 1 is 8.0%. Suppose you consider buying a share of stock at a price of $100. The stock is expected to pay a dividend of $9 next year and to sell then for $103. The stock risk has been evaluated at B = 0.5. Using the SML, calculate the fair rate of return for a stock with a B = 0.5. (Negative value should be indicated by a minus sign. Enter your answer as a decimal rounded to 4 decimal places.) Question 8 3 pts Suppose the yield on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the expected return required by the market for a portfolio with a beta of 1 is 8.0%. Suppose you consider buying a share of stock at a price of $100. The stock is expected to pay a dividend of $9 next year and to sell then for $103. The stock risk has been evaluated at B = 0.5. Calculate your expected rate of return for the stock with a B = 0.5, using the expected price and dividend for next year. (Negative value should be indicated by a minus sign. Enter your answer as a decimal rounded to 4 decimal places.) Question 9 3 pts Suppose the yield on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the expected return required by the market for a portfolio with a beta of 1 is 8.0%. Suppose you consider buying a share of stock at a price of $100. The stock is expected to pay a dividend of $9 next year and to sell then for $103. The stock risk has been evaluated at B = 0.5. Is the stock overpriced or underpriced? Underpriced Overpriced