i. If the risk-free return is 8% and expected return on market portfolio 12% calculate the rate of return of the stock if its required return is: a. = 15% b. 18% c. 10% ii. The risk - free return is 8% and the market return on a stock whose beta is 1.5 is 16%. What is the return on market portfolio? 111. Followings are the information Risk-free rate of return: Market rate of return: Standard deviation of return on the market as a whole: Covariance of returns for the market With returns for the shares of DW plc over the same period: Dividend yield of DW plc's shares: Capital gain of DW plc's shares: 7% 13% 50% 20.5% 6% 15% Calculate the cost of equity of DW plc and explain why the actual return differs from the cost of equity