14. The market has an expected rate of return of 15%. Small-company stocks return22%. U.S treasury bills return 2% and the annual inflation rate is 1%. What is the market risk premium?

15. ABC Corp has a beta of 1.5. The risk-free rate is 6% and the market risk premium is 12%. What is the required return of ABC?

16.

the stock has the following returns for a three-year period:

Year 1: 15%

Year 2: -1%

Year 3: 2%

what are the arithmetic and geometric rates of return, respectively, for the three year period?

17. You have 50% of your portfolio in a stock with a standard deviation of 30% and 50% of your portfolio in a stock with a standard dev of 34%. The portfolio standard dev will be 32%. Note: there are less than 30 stocks in the portfolio.