Question: stock j has a beta of 1.47?
Answer: Stock J has a beta of 1.47 and an expected return of 15.8 percent. Stock K has a beta of 1.05 and an expected return of 11.9 percent. What is the risk-free rate if these securities both plot on the security market line? The risk-free rate is 4.2 percent and the expected return on the market is 12.3 percent.