You believe the following expectations hold true: expected risk-free rate (T-bills): 5% expected return of market: 10% expected return of risky security S: 11% If Security S has a beta of 1.5, according to the CAPM, what is its alpha? Alpha of S 0% 0% Alpha of S 1% 1% Alpha of S 2% 2% Alpha of S Question 20 You believe the following expectations hold true: expected risk-free rate (T-bills): 5% expected return of market: 10% According to CAPM, if Security S has a beta of 1.5, what is its expected return? < 0% expected return S 5% < 5% expected return S 10% < 10% expected return S 15% 15% < expected return S 1 pts