1) Stock A's stock has a beta of 1.30, and its required return is 11.50%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.)

Select the correct answer.

a. 8.94%

b. 8.98%

c. 8.90%

d. 9.02% e. 9.06%

2)

Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 11.00%, and the risk-free rate is 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.)

Select the correct answer.

a. 9.75%

b. 9.51%

c. 9.57%

d. 9.63%

e. 9.69%