Question $6$

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

The risk$-$free rate of return is $2\mathrm{.}6\%$

The beta of the stock is $0\mathrm{.}89$

The expected market premium is $4\%$

What is the expected return of the stock?

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

Question $7$

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

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

The beta of the stock is $1\mathrm{.}3$

The expected return of the stock is $9\%$

What is the expected return of the market?

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