Your personal opinion is that a security has an expected rate of return of 0.11. It has a beta of 1.5. The risk-free rate is 0.05 and the market expected rate of return is 0.09. According to the Capital Asset Pricing Model, this security is A. underpriced. B. overpriced. C. fairly priced. D. Cannot be determined from data provided.

C. Fairly priced

Explanation:

CAPM model formula is,

= β  

Where,

= the expected return on the security A

= Risk-Free Rate

= Market Expected Rate of Return

β = Beta of the Security

In this question we have the following,

=  0.05

= 0.09

β = 1.5

We have to calculate the (expected return on the security A)

= + β  

= 0.05 + 1.5(0.09-0.05)

 = 0.11

According to the CAPM model, the expected rate of return of security A is 11% and the personal opinion is also equal to 11%

Therefore, the answer is option C. Fairly priced

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.