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3:32 Problem set 6 Question 1 Unanswered 5 attempts left Assume the CAPM holds. The...

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3:32 Problem set 6 Question 1 Unanswered 5 attempts left Assume the CAPM holds. The risk free rate is =0.04. The expected return on the market is E[rm.:]=0.08. What is the expected return E[r] of a stock with a beta of 1.2? Express your answer in percentage terms (e.g., if you find E[r]=0.115 or 11.5%, write 11.5 in the answer box). Type your response Submit Question 2 Unanswered 5 attempts left Assume the CAPM holds. A stock has an expected payoff of Epayoffj=110 in a year's time. The risk free rate is r=0.04 and the expected return on the market is E[rmk:]=0.08. Suppose the stock has a beta of B=1.5, what is the price of the stock? Type your response Cute 0/8 answered

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