Question $3$

Given the following regarding a share of stock and the overall market:

The risk$-$free rate of return is $2\mathrm{.}7\%$

The beta of the stock is $0\mathrm{.}36$

The expected market return is $8\mathrm{.}89\%$

What is the expected risk premium of the stock?

$($Answer to the nearest $0\mathrm{.}01\%)$

Question $4$

Given the following regarding a share of stock and the overall market:

The risk$-$free rate of return is $2\mathrm{.}1\%$

The beta of the stock is $0\mathrm{.}96$

The risk premium of the stock is $5\%$

What is the expected risk premium of the market?

$($Answer to the nearest $0\mathrm{.}01\%)$