1. What is the beta of a security with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%?
0.90
0.50
1.50
0.75
2. Security XYZ has a beta of 1.1. The expected market rate of return is stable at 8% and the risk-free rate is 4%. If the realized rate of return is 12%, the alpha of the stock is __________