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Question 3 Given the following regarding a share of stock and the overall market: The risk - free rate of return is 2 . 7

Question 3
Given the following regarding a share of stock and the overall market:
The risk-free rate of return is 2.7%
The beta of the stock is 0.36
The expected market return is 8.89%
What is the expected risk premium of the stock?
(Answer to the nearest 0.01%)
Question 4
Given the following regarding a share of stock and the overall market:
The risk-free rate of return is 2.1%
The beta of the stock is 0.96
The risk premium of the stock is 5%
What is the expected risk premium of the market?
(Answer to the nearest 0.01%)
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