Could you please help me out with these two questions? Thanks a lot.

1.

Assume that the economy has three types of people.20% are fad followers, 75% are passive investors, and 5% are informed traders.The portfolio consisting of all informed traders has a beta of 1.4 and an alpha of 1.56%.The market has an expected return of 10% and the risk-free rate is4%.

What is the alpha for the fad followers?Enter your answer as a percentage to two decimal places (i.e. 0.12% rather than 0.0012; the percent sign is not necessary).

2.

RON Ltd has the following capital structure components:

Five million shares issued with a current market price of 5. Equity holders require a 11% return.

10 million face value of Corporate bonds outstanding. These bonds pay an annual coupon of 6% and currently trade at a yield to maturity of 6%.

If the firm faces a corporate tax rate of 30%, compute RON Ltd's Weighted Average Cost of Capital (WACC). Enter your answer indecimalform to FOUR decimal places. For example 10.34%, would be entered as 0.1034