Assignment:
Q1. If investors’ aversion to risk increased, would the risk premium on a high-beta stock increase more or less than that on a low-beta stock? Explain.
Q2. If a company’s beta were to double, would its expected return double?
Q3. Is it possible to construct a portfolio of stocks which has an expected return equal to the risk-free rate?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.