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1. A stock has a beta of 1.35, the expected return on the market is 17 percent, and the risk-free rate is 4.80 percent. What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

2. Asset W has an expected return of 10.0 percent and a beta of 1.15. If the risk-free rate is 3.0 percent, what is the market risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92881009

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