Use the following to answer questions 12-14:

12. What is the market risk premium?

A) 5%

B) 10%

C) 15%

D) none of the above

13. What is the expected return on the market?

A) 5%

B) 10%

C) 15%

D) none of the above

14. What is the expected return for a stock with a beta of 0.5?

A) 5%

B) 7.5%

C) 12.5%

D) none of the above