1. You are trying to calculate the beta for a stock by using data for the last 30 years. You find that the covariance of the stock and market returns per month is 0.000005 (this is a number, not a percentage), and the standard deviation of market returns per month is 0.0039 (this is a number, not a percentage). What is the beta of the stock? Round the answer to three decimal places
2. A stock with a beta of 1.1 has an expected rate of return of 13.08%. The risk-free rate in the market is 3.04%. What is the market premium? Assume CAPM is true. Round the answer to two decimal places in percentage form. Decimal form answer: Percentage form answer: