1. The common stock of Jensen Shipping has an expected return of 15.20 percent. The return on the market is 10 percent and the risk-free rate of return is 3.5. What is the beta of this stock?
0.65
1.17
1.41
2.80
1.80
2. The common stock of Auto Deliveries sells for $26.21 a share. The stock is expected to pay $1.90 per share next month when the annual dividend is distributed. Auto Deliveries has established a pattern of increasing its dividends by 4.5 percent annually and expects to continue doing so. What is the market rate of return on this stock?
9.50 percent
16.25 percent
14.00 percent
7.25 percent
11.75 percent