1. An investment costing $25 returns $27.50 at the end of one year with no risk. Given this, what is the IRR?

2. a stock has a beta of 1.5 and an expected return of 16.35%, what is the risk free rate if the market rate of return is 12.5%? _____

3. in a year which corporate bonds offered an average return of 10%, common stocks offered any average return of 17% and treasury bills offfered 2%. the market risk premium was: ___%