If the expected return on the market is 8 percent and the risk-free rate is 4 percent:

1. What is the expected return for a stock with a beta equal to 0.79? (Round answer to 2 decimal places, e.g. 0.15.)

2. What is the market risk premium for the set of circumstances described? (Round answer to 2 decimal places, e.g. 0.15.)