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The Treasury bill rate is 14 percent, and the expected return on the market portfolio is 22 percent. Using the capital asset pricing model answer

The Treasury bill rate is 14 percent, and the expected return on the market portfolio is 22 percent. Using the capital asset pricing model answer the following:

.i) If an investment with a beta of 0.8 offers an expected return of 9.8 percent, does it have a positive NPV? ii) If the market expects a return of 21.2 percent from stock X, what is its beta?

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