The market price of a security is $50. Its expected rate of return is 14%. The risk-free rate is 6% and the market risk premium is 8 tion coefficient with the market portfolio doubles (and all other variables remain unchanged) Assume that the stock is expected to pay a constant dividend in perpetuity .5%. What will be the market price of the security if its correla- 3. Are the following true or false? Fynlain