Question: Can you please explain to me my error? Question Type 1 : Suppose the risk free return is 3 % and you measure the market

Can you please explain to me my error?
Question Type 1: Suppose the risk free return is 3% and you measure the market risk premium to be 6%. Cisco has a beta of 1.2. According to the CAPM, what is its expected return?
*My Solution*
Risk Free Return =3%
beta =1.2
Market Risk Premium (e(Mkrt)-rf)=6%
Expected Return =3%+1.2*6.0%=10.20%(CORRECT)
Question Type 2: Suppose the risk free return is 4% and the market portfolio has an expected return of 10% and standard deviation of 16%. Pepsico stock has a beta of 0.73. What is its expected return?
*My Solution:*
Risk Free Return =4%
beta =0.73
Market Risk Premium (e(Mkrt)-rf)=4%+0.73(10%)=11.30%(WRONG)
Expected Return =3%+1.2*6.0%=10.20%(CORRECT)

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