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A stock has a beta of 0.9 and an expected return of 9%. A risk-free...

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Finance

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A stock has a beta of 0.9 and an expected return of 9%. A risk-free asset has an expected return of 3%. What is the stock's "slope" a.k.a. compensation for systematic risk? In other words, if you take a portfolio of the stock and the risk-free asset and then change the weights to increase the beta by 1, how much will the expected return increase as a result? Write your answer out to four decimals - for example, write 5.38% as .0538

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