You have run a regression of monthly returns for Cyprus Industries, a publicly traded chemical company, against the S&P 500 and obtained the following: ReturnsCyprus ---0.15% +1.80 ReturnsS&P 500 R2 = 35% On a market--adjusted, risk--adjusted basis, what does the annual risk-free rate need to be during this period for Cyprus to do as well as expected during the regression period? 0.1875% 2.25% O 1.08% 1.875% 1.55% Gepla Software is a steel company with 100 million shares trading at $25/share and $250 million in debt. You have run a regression of the firm's stock returns against a market index using the last 5 years of data and have estimated a beta of 1.06. If the regression beta is right, the average debt to equity ratio for the company over the last 5 years was 10% and the marginal tax rate is 40%, estimate the beta for the equity, given its current financial leverage. BL = Bu (1+ ((1-t)D/E)) 1,12 O O 1.06 1.19 1.10 O 1.00