1. If the market return is 5% and the risk-free rate is 1.3% and the Beta of Dillards stock .677. What is the expected return on Dillards stock according to the CAPM?

2. Suppose we are calculating the Beta of Google stock. We chart the market return on the X axis and Googles return on the Y axis of a scatter plot. We then draw a line through the dots that minimizes the distance of the dots from the line. The equation of this line is Y = .87X + .056

What is the Beta of Google stock?