If the average risk$-$free rate during the regression period was $6\%,$ estimate Jensen's alpha for Buhoo, in annualized terms.

During the period of the regression, Buhoo was in the Fashion business ONLY and had an average debt$-$to$-$equity ratio of $60\%.$ What is the business risk for the fashion business assuming a tax rate of $40\%?$

Buhoo is considering investing in the magazine business. The average beta of firms specializing in the magazine business is $1\mathrm{.}25,$ and these firms have an average debt$-$to$-$equity ratio of $30\%$; they face an average tax rate of $35\%.$ Estimate the business risk $($unlevered beta$)$ for the magazine business.