1) Calculate the Expected Return for the company's stock The historical return of the stock market over the last ten years has been 6% The company stock is 15% more volatile than the stock market with a Beta of 1.8. The interest rate on a 10-year treasury note is 1.5%

2) Calculate the Expected Return. Assume that historically, when the entire stock market goes up 10%, the company's stock goes down 10%. The interest rate on the 10-year treasury note is 1.5%. The historical return on the market is 6%.