1. Surf and Spray Inc. has a beta equal to 1.8 and a required return of 15% based on the CAPM. If the risk free rate of return is 4.2%, the expected return on the market portfolio is

A) 21%.

B) 19.2%.

C) 13.4%.

D) 10.2%.

2. Decker Corp. common STOCKhas a required return of 17.5% and a beta of 1.75. If the expected risk free return is 3%, what is the expected return for the market based on the CAPM?

A) 11.29%

B) 14.29%

C) 13.35%

D) 15.27%

Please provide detail explanations.