Suppose you have the estimates of the CAPM beta for the equity shares of the following firms: Levi Strauss & Co. (NYSE: LEVI) : = 1.10 Tesla Inc. (Nasdaq: TSLA) : = 1.90 Assume the risk-free rate is estimated at 4% and has been stable over the entire CAPM estimation period and will remain so in the foreseeable future as well. Answer questions (a) and (b) below

a) Suppose the expected return on S&P 500 index, a proxy for the market portfolio, is estimated at 14%. Find the CAPM required return on equity shares of Levis and Tesla, respectively.

b) Suppose the market risk premium is estimated at 12%. Find the CAPM required return on equity shares of Levis and Tesla, respectively.