1.A manager believes his firm will earn a 17.00 percent return next year. His firm has a beta of 1.24, the expected return on the market is 15.00 percent, and the risk-free rate is 7.00 percent. Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.) Required return %

2.Table 9.2 Average Returns for Bonds

		Low-risk bonds
1950 to 1959	Average		2.0	%
1960 to 1969	Average		4.7
1970 to 1979	Average		6.7
1980 to 1989	Average		8.5
1990 to 1999	Average		4.6
2000 to 2009	Average		2.5

Table 9.4 Annual Standard Deviation for T-Bills

	Low-risk bonds
1950 to 1959		1.1	%
1960 to 1969		1.9
1970 to 1979		2.2
1980 to 1989		2.7
1990 to 1999		1.2
2000 to 2009		1.9

Use the tables above to calculate the coefficient of variation of the risk-return relationship in T-bills during each decade since 1950. (Round your answers to 2 decimal places.)

Decade	CoV
1950s
1960s
1970s
1980s
1990s
2000s