Part 1: Dallas Star Inc's stock has a 40% chance of producing a 5% return and a 60% chance of producing a 25% return. What is the firm's expected rate of return? What is the firm's Standard Deviation? What is the firm's Coefficient of Variation?

Part 2: Calculate the required rate of return for Dallas Star Inc assuming that (1) the nominal risk free rate is 7%, (2) expected market return is 10% and (3) the firm has a beta of 2. (Hint: you need to find out the market risk premium first).

Please show all work. Please do not handwrite.