Assume that the market portfolio is equally likely to increase by 10% remain stable or decreases by 5%. Security "SAVE"does up on average by 6% when the market goes up, increases by 0.67% when the market doesn't change or goes down by 2% when the market goes down.

What is the Beta of the stock? What is implied risk free retake if the CAPM holds?

A) 0.847 and 1.67%

B) 0.533 and 1.67%

C) 0.533 and 2.34%

D) 0.847 and 0.67%

E) 0.544 and 0.67%

Su Mei deposits 24668 today and is promised to be paid bad 25668 in 6 years. What is the implied effective annual rate of return

The implied annual rate of return is_________%