Problem 5 and assignment

(Please show me the steps)

Problem 1

The market risk premium for next period is 9.40% and the risk free rate is 1.60%. Stock Z has a beta of 1.01 and an expected return of 14.20%.

(i)What is the market's reward-to-risk ratio?

(ii)What is stock Z's reward-to-risk ratio?

Problem 2

Consider the function f(x) = (8x + 5)^1/3.

(i)Enter the number of critical points/numbers of f(x).

(ii)Determine the x-coordinates of the critical points. Enter DNE if f(x) does not have any critical points.