T Text Shape Media Comment TE Insert Table Chart Due: the midnight Saturday of the week Submit your work to the BOLT Q1) What are the five business risks covered in the class? I Q2) In the CAPM, what is the difference between equity risk premium and an individual stock's risk premium? Q3) Beta risk is often called or 04) What are the two factors that influence risk-free interest rate? 05) Cooley Company's stock has a beta of 1.28, the risk-free rate is 2.25%, and the equity risk premium is 5.50%. What is the firm's expected rate of return? Do not round your intermediate calculations. Q6 - Q10) The risk-free rate is 6%; Stock A has a beta of 1.0; Stock B has a beta of 2.0; and the equity risk premium is positive. Q6) If the risk-free rate increases but the equity risk premium stays unchanged, Stock B's expected return will increase by more than Stock A's. (True/False) 07) Stock B's expected rate of return is twice that of Stock A. (True/False) Q8) If Stock A's expected return is 11%, then the equity risk premium is 5%. (True/False) 09) If Stock B's expected return is 11%, then the equity risk premium is 5%. (True/False) Q10) if the risk-free rate remains constant but the equity risk premium increases, Stock A's expected return will increase by more than Stock B's. (True/False)