1. A stock has an expected return of 12.9 percent, a beta of 1.50, and the expected return on the market is 9.4 percent. What must the risk-free rate be? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Risk-free rate %
2. A stock has an expected return of 12.6 percent, its beta is .70, and the risk-free rate is 2.5 percent. What must the expected return on the market be? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Expected return %