1. Suppose a stock had an initial price of $46 per share, paid a dividend of $1.01 per share during the year, and had an ending share price of $58. Compute the percentage total return. Enter the answer in 4 decimals e.g. 0.1234.
2. A stock has an expected return of 0.07, its beta is 0.56, and the expected return on the market is 0.05. What must the risk-free rate be? (Hint: Use CAPM) Enter the answer in 4 decimals e.g. 0.0123.
3. A stock has an expected return of 0.10, its beta is 1.35, and the risk-free rate is 0.02. What must the expected return on the market be? Enter the answer with 4 decimals (e.g. 0.0567).