1. Suppose the risk-free return is 3% and you measure the market risk premium to be 6%. Canadian Natural Resources (CNQ) has a beta of 1.71. According to the CAPM, what is its expected return? please show full solution
2. XYZ Preferred currently sells for $19 and is yielding 7%. It was originally issued at a par value of $25 per share. What was the original dividend yield at the date of issuance? Show mathematical setup with formula and how you would enter this into your financial calculator.