A$)$ What expected returns should an investor expect from investments in common stock? You are given the following information: Risk free rate of return $=4\%$; market risk premium $=11\%$; Beta of the stock $($assume CAPM holds$)=0\mathrm{.}72.(5$ points$)$

B$)$ Stock A with beta of $0\mathrm{.}8$ offers a $11\%$ return while stock B with a beta of $1\mathrm{.}2$ offers a $15\%$ return. What is the risk$-$free rate? What is the common market return? Assume CAPM holds. $(5$ points$).$

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