Question: 1) The expected return for XYZ stock calculated using the CAPM is 13% and its beta is 1.5. The return on the market portfolio is

1) The expected return for XYZ stock calculated using the CAPM is 13% and its beta is 1.5. The return on the market portfolio is 10%. Calculate the risk free rate Round intermediate steps and your final answer to four decimals. Enter your answer in decimal format (EX: .XXXX) .

2) The expected return for PQU stock calculated using the CAPM is 12%. The risk free rate is 5% and the beta of the stock is 1. Calculate the market risk premium. Round intermediate steps and your final answer to four decimals. Enter your answer in decimal format (EX:.XXXX)

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