Use CAPM to solve the following: A stock as a beta of 0.9 and the market expects to return 12.0%. If the risk free rate is 2.0%, what is the expected return of the stock? 11.0% 8.6% 14.2% 3.4% Question 15 10pts How much would you be willing to pay for a $1,000 bond that has a coupon rate of 10%, with 8 years left until maturity, if the current market rate is 12% ? $690.03 $1,348,47 $1,161.86 $900.64