what is the expected cost of equity of stock that has a market beta of 1.5, in expectation of a 5% annual S&P500 index return and a risk-free rate of 1% APR? ( Single Choice)

Answer 1: 7.5%

Answer 2: 8.5%

Answer 3: 7%

Answer 4: 6%

what is the Sharpe ratio for a stock that has an average return of 5% and volatility of 10%, assuming a risk-free rate of 1%? ( Single Choice)

Answer 1: 0.5

Answer 2: 0.4

Answer 3: 0.6

Answer 4: what is a Sharpe ratio?