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25) Laura has one risk-free asset and one risky stock in her portfolio. The risk-free...

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25) Laura has one risk-free asset and one risky stock in her portfolio. The risk-free asset has an expected return of 3.2 percent. The risky asset has a beta of 1.3 and an expected return of 14.9 percent. What is the expected return on the portfolio if the portfolio beta is 0.975? A) 7.65 percent B) 9.83 percent C) 10.73 percent D) 11.98 percent E) 12.37 percent 26) Wilson Farms' stock has a beta of.84 and an expected return of 7.8 percent. The risk-free rate is 2.6 percent and the market risk premium is 6 percent. This stock is CAPM return for the stock is A) undervalued; 7.34 B) undervalued; 7.49 C) undervalued; 7.64 D) overvalued; 7.34 E) overvalued; 7.49 because the percent

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