The standard deviation of the stock of SafeComp is equal to 16% and its beta coefficient is equal to 0.8. The beta coefficient of RiskyComp is equal to 1.2. Assume the risk-free interest rate is equal to 0%. What can you say about the standard deviation of RiskyComp stock return?

Question 12 options:

	It is equal to 24%
	It is equal to 36%
	It is at least 16%, but it is neither 24% nor 36%
	None of the above

The expected return on the stock of SafeComp is equal to 14% and its beta coefficient is equal to 0.8. Find the expected return on the stock of RiskyComp if its beta coefficient is equal to 1.2 and the risk-free interest rate is 5%

Question 13 options:

	21%
	18.5%
	9.3%
	Cannot be determined from the available information.