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Please help with the below two questions. I am not able to figure these last two out. The risk-free rate of return is 4.6 percent
Please help with the below two questions. I am not able to figure these last two out.
- The risk-free rate of return is 4.6 percent and the market risk premium is 14 percent. What is the expected rate of return on a stock with a beta of 1.7?
- The common stock of Flavorful Teas has an expected return of 26.87 percent. The return on the market is 17 percent and the risk-free rate of return is 2.9 percent. What is the beta of this stock?
I appreciate your help.
Amanda
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