1. A stock has a beta of 0.8 and an expected return of 10.6 percent. If the risk-free rate is 2.4 percent, what is the market risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

2. A stock has an expected return of 10.9 percent, its beta is 1.32, and the risk-free rate is 2.7 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)