1) Jerilu Markets has a beta of 1.06. The risk-free rate of return is 2.39 percent and the market rate of return is 12.84 percent. What is the risk premium on this stock?

2) Suppose the common stock of United Industries has a beta of 0.83 and an expected return of 8.7 percent. The risk-free rate of return is 3.4 percent while the inflation rate is 2.8 percent. What is the expected market risk premium?