1. What is the expected rate of return on a stock with a beta of $1\mathrm{.}5$ if the market average return is $7\mathrm{.}0\%$ and government bonds have a yield of $2\mathrm{.}0\%?$

$\mathrm{}$2.  What is the expected rate of return on a stock with a P$/$E ratio of $14?$