What is the beta of a security with an expected return

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Reference no: EM131327835

1. What is the beta of a security with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%?

0.90

0.50

1.50

0.75

2. Security XYZ has a beta of 1.1. The expected market rate of return is stable at 8% and the risk-free rate is 4%. If the realized rate of return is 12%, the alpha of the stock is __________

Reference no: EM131327835

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