Question: im taking my final rn please help me out 1) A stock has an expected return of 15 percent, its beta is 1.4, and the

im taking my final rn please help me out

1) A stock has an expected return of 15 percent, its beta is 1.4, and the expected return on the market is 12 percent. What must the risk-free rate be?(Do not round your intermediate calculations.)

rev: 09_20_2012

4.27%

-1.80%

4.72%

4.68%

4.50%

2) A stock had returns of 6 percent, -22 percent, 18percent, 12 percent, and -2 percent over the past five years. What is the standard deviation of these returns?

15.52 percent

10.21 percent

13.49 percent

18.74 percent

11.68 percent

3) The Absolute Zero Co. just issued a dividend of $2.85 per share on its common stock. The company is expected to maintain a constant 5.9 percent growth rate in its dividends indefinitely.

If the stock sells for $57 a share, what is the company's cost of equity?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal pl0 aces, e.g., 32.16.)

4

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