You own a plot of land that you are leasing to someone for a fee of $22,000 per year. Your contract with them states that this fee will grow by 3.8% per year each year. The lessee plans to use the land for 5 years. With a discount rate of 6%, what is the value of that contract to you today? Answer: $99,554.48 Using the Capital Asset Pricing Model, compute the expected return for a stock with a Beta of 1.9, a total market return of 6.7%, and a risk free rate of 2% Answer: 10.93% Using the Capital Asset Pricing Model, compute the Beta for a stock with an expected return of 11%, a total market return of 7.5%, and a risk free rate of 1.2% Answer: 1.56 Using the Capital Asset Pricing Model, compute the risk free rate for a stock with a Beta of 2.4, a market risk premium of 5.8%, and an expected return of 15% Answer: 1.08%