1. The expected return on HiLo stock is 13.69% while the expected return on the market is 11.5%. The beta of HiLo is 1.3

[answerhappygod]

1. The expected return on HiLo stock is 13.69% while the
expected return on the market is 11.5%. The beta of HiLo is 1.3.
Assume CAPM holds, what is the risk-free rate of
interest?
A. 2.8%
B. 3.1%
C. 3.7%
D. 4.2%
E. None of the above
2. The efficient frontier of risky assets is
A. the portion of the opportunity set that lies above the
minimum variance (MV) portfolio.
B. the portion of the opportunity set that represents the
efficient standard deviations.
C. the portion of the opportunity set that lies below the
minimum variance (MV) portfolio
D. the set of portfolios that have zero standard
deviation.
E. both A and D are true.