I need help in calculations of these problems on expected returns with risk-free rates:
1. A stock has a beta of 1.05, the expected return on the market is 10% and the risk-free rate is 3.8%. What must the expected return on the stock be?
2. A stock has an expected return of 12.4%, its beta is 1.17 and the risk-free rate is 4.2%. What must the expected return on the market be?