Question $8$

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

The risk$-$free rate of return is $3\mathrm{.}4\%$

The beta of the stock is $2\mathrm{.}46$

The expected market return is $8\mathrm{.}09\%$

What is the expected return of the stock?

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

Question $9$

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

The risk$-$free rate of return is $1\mathrm{.}7\%$

The beta of the stock is $0\mathrm{.}72$

The expected market premium is $9\%$

What is the expected risk premium of the stock?

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