Perform the following in Excel, the Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. On the basis of the capital asset pricing model:
a What is the risk premium on the market?
b What is the required return on an investment with a beta of 1?
c What is the required return on an investment with a beta of 0?
d What is the required return on an investment with a beta of 1.6?
e What is the slope of the SML?