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Please answer these questions. Question 1- The annual nominal rate is j m = 0.12pa. What is the effective annual rate as a percentage to

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Please answer these questions.

Question 1- The annual nominal rate is jm = 0.12pa. What is the effective annual rate as a percentage to two decimal places? The number of compounding periods is 6. Enter your answer as a decimal eg 17.42% = .1742 to four decimal places. Accuracy of one basis point. Tip: use excel to get the required accuracy.

Question 2- Polycorp's existing assets (projects) have a average beta of 1.2. The market risk premium is 6% and the risk free rate is 3%. What is the risk adjusted rate of return RADR required for these assets (the cost of capital of the existing assets)? provide your answer as a percentage but do not enter the % sign. An answer of 10.456% should be entered as 10.46.

image text in transcribed Finance Questions Question 1- The annual nominal rate is jm = 0.12pa. What is the effective annual rate as a percentage to two decimal places? The number of compounding periods is 6. Enter your answer as a decimal eg 17.42% = .1742 to four decimal places. Accuracy of one basis point. Tip: use excel to get the required accuracy. Question 2- Polycorp's existing assets (projects) have a average beta of 1.2. The market risk premium is 6% and the risk free rate is 3%. What is the risk adjusted rate of return RADR required for these assets (the cost of capital of the existing assets)? provide your answer as a percentage but do not enter the % sign. An answer of 10.456% should be entered as 10.46

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