Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 0.85; expected return on the Market = 9.50%; expected return on T-bills = 1.80%; current stock Price = $9.01; expected stock price in one year = $11.04; expected dividend payment next year = $1.13. Calculate the a) Required return for this stock (1 point):

b) Expected return for this stock (1 point):

Q5) The market risk premium for next period is 5.00% and the risk-free rate is 1.50%. Stock Z has a beta of 1.40 and an expected return of 10.00%. What is the: a) Market's reward-to-risk ratio? (1 point):

b) Stock Z's reward-to-risk ratio (1 point):