1. K.J. Lee, CFA, an analyst with Water's Edge Securities, estimates the market risk premium is 7.25% and the risk-free rate is 1.5%. She's calculated the beta for Summerfield Tech as 1.34, and she estimates the expected return is:

2. Given the choice between two assets with standard deviations of 18.10% each, a return for asset A of 16.40% and a return for asset B of 17.20%, a rational investor would choose:

3.Monroe McIntyre has estimated the expected return for Bruehl Industries to be 11.45%. He notes the risk-free rate is 1.80% and the return of the market is 9.45%. Based on this information, he estimates Bruehl's beta to be:

4.Greg Noronha has been told the expected return on Merchants Bank is 7.00%, He knows the risk-free rate is 2.10%, the market risk premium is 6.45%, and Merchants' beta is 0.78. Based on the Capital Asset Pricing Model, Merchants Bank is: