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1.In February 2014 the risk-free rate was 4.37 percent, the market risk premium was 7 percent, and the beta for Twitter stock was 1.56. What
1.In February 2014 the risk-free rate was 4.37 percent, the market risk premium was 7 percent, and the beta for Twitter stock was 1.56. What is the expected return that was consistent with the systematic risk associated with the returns on Twitter stock? (Round answer to 2 decimal places, e.g. 17.54%.)
Expected return ?
2.The market risk premium is 5.98 percent, and the risk-free rate is 4.23 percent. If the expected return on a bond is 6.48 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.)
Beta of the bond?
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