Question #1: Your stock has a = 4.99, the expected return on the stock market is 14.87%, and the yield on T-bills is 7%. What is the expected return on your stock?

Question #2:

Tommy wishes to determine the return on two stocks she owned in 2019.

At the beginning of the year, stock X traded for $80per share. During the year, X paid dividends of $2

At the end of the year, Xstock was worth $73

Calculate the annual rate of return, r, for X

(Enter the answer in % format without % sign -> 20.51 and not 20.51% or 0.2051)