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The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. Using the capital asset pricing model: a. Draw

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The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. Using the capital asset pricing model: a. Draw a graph showing how the expected return varies with beta. b. What is the risk premium on the market? c. What is the required return on an investment with a beta of 1.5? d. If the market expects a return of 11.2% from stock X, what is its beta?

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