nmb 4 and 5

4. The risk-free rate of interest, KRF, IS 6 percent. The overall stock market has an expected return of 12 percent. Nutshell, Inc. has a beta of 1.2. What is the required return of Nutshell, Inc. stock?* a) 12.0% O b) 12.2% c) 12.8% d) 13.2% e) None of the above 5. Alpha stock has an expected return of 12.25 percent. The beta of the stock is 1.15 and the risk-free rate is 5 percent. What is the market risk premium? * a) 1.30% b) 6.30% C) 15.00% d) 6.50% e) None of the above