URGENT!!!

Question $28$

$10$ pts

Suppose you observe the following, and that the CAPM holds:

Security

Beta

Expected Return

Venus Corp.

$1\mathrm{.}85$

$0\mathrm{.}195$

Mars Corp.

$1\mathrm{.}54$

$0\mathrm{.}168$

a$)$ Compute the Expected Return on the Market

b$)$ Compute the Risk$-$free Rate of Interest.

Please show all work clearly to get partial points. Without work, you will get a zero, even if your answer is correct.

Edit

Format

Table

$12$ pt

Paragraph

B

I

$U_{?}$

A

$$

$2$

$$

$T^2$

$$

$$ vdots

$1.)12\mathrm{.}1\%$

$2.)3\mathrm{.}5\%$