1. Amon Amarth’s stock has an expected return of 13 percent and a beta of 0.9. If the risk-free rate is 4.55 percent, what is the expected return of the market portfolio according to CAPM?
12.94%
13.24%
14.50%
9.39%
2. The slope of an asset's security market line (SML) is the ___________:
market risk premium
beta coefficient
portfolio weight
reward-to-risk ratio