QUESTION 7 A stock has a beta of 1.5 and an expected return of 16.35%. What is the risk-free rate if the market rate of return is 12.5% ? . % QUESTION 8 You have just retired with savings of $10 million. If you expect to live for 57 years and to earn 13% a year on your savings, how much can you afford to spend each year (in $ dollars)? $_ (Assume that you spend the money at the start of each year.) QUESTION 5 Which one of these is a specific risk? O Revision to the corporate tax laws. O Inflation increase of 2.3%. O Deterioration in the overall economic outlook. O A fire at the company's main factory. QUESTION 6 If the dividend yield for year 1 is expected to be 7% based on a stock price of $30, what will the year 5 dividend be if dividends grow annually at a constant rate of 8% (in $ dollars)? $_ QUESTION 7