5). The risk free return is 7.5 per cent, Company J has a beta of 1.15 and an expected return of 25 per cent. Calculate the risk premium for the market index over the risk free assuming J is on the security market line. 2). What is the holding period return for a share which is held for five months and sold for $6.65. The purchase price was $3.89 and 11p dividend is payable 3). The returns from a project are normally distributed with a mean of S780.000 and a standud deviation of $100,000. If the project loses more than $90,000 the company will be made insolvent. What is the probability of insolvency? 2). What is the holding period return for a share which is held for five months and sold for $6.65. The purchase price was $3.89 and 11p dividend is payable 3). The returns from a project are normally distributed with a mean of S780.000 and a standud deviation of $100,000. If the project loses more than $90,000 the company will be made insolvent. What is the probability of insolvency