The treasury bill rate is 4% and the expected return on the market portfolio is 11%. According to the capital asset pricing model:

1. What is the risk premium on the market?
2. What is required return on an investment with a beta of 1.6?
3. If an investment with a beta of 0.8 offers an expected return of 8.6%, does it have a positive or negative NPV?
4. If the market expects a return of 11.0% from stock x what is its beta?

Market Risk Premium %

Return on Investment %

NPV -----

Beta -----