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I need help checking my work and answers for this assignment. Please help by showing any work that is applicable so I can follow through to the answer and see where I went wrong, if in fact I did. Thank you.

13.Calculate the required rate of return for Best Inc., assuming that (1) investors expect a

3% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium

is 5.0%, (4) the firm has a beta of 1.2, and (5) its realized rate of return has averaged 10.0%

over the last 5 years.

14.Calculate the required rate of return for Hope Inc., assuming that (1) investors expect a

2.0% rate of inflation in the future, (2) the real risk-free rate is 3.5%, (3) the market return on

S&P 500 Index is 8.5%, (4) the firm has a beta of 1.5, and (5) its realized rate of return has

averaged 10.0% over the last 5 years.

15.Chance Inc's stock has an expected return of 15%, a beta of 1.5, and is in

equilibrium.Assume the nominal risk-free rate is 4.00%.

(a) what is the market risk premium?

(b) What is the equity risk premium?

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