Suppose the expected return on your treasury stock is 9% and the expected return on your market portfolio is 11%. With a beta coefficient of 1.1, the expected return on stock would be:

Name: Suppose the expected return on your treasury stock is 9% and the expected return on your market portfolio is 11%. With a beta coefficient of 1.1, the expected return on stock would be:
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Your expected return on stock would be 11.5%.
Ri = Rf +(Rm - Rf)?j
Ri = .09+(11-.09)1.1 =11.2%

Suppose the Expected Return on Your Treasury Stock Is 9