1.Wildings, Inc. common stock has a beta of 1.2. If the expected risk free return is 4% and the expected market risk premium is 9%, what is the expected return on Wildings' stock?

		10.0%
		12.0%
		13.8%
		14.8%

2.An investment promises to pay you the following amounts at the end of each of the next 10 years: (1) $1,000, (2) $2,000, (3) $3,000, (4) $4,000, (5) - (10) $5,000 per year. If you want to earn a return of 8% per year, how much will you be willing to pay for the investment today?