Question: please answer both, ill thumbs up! 1. A mutual fund earned an average annual return of 12.0% over the last 5 years. During that time,

please answer both, ill thumbs up!

1. A mutual fund earned an average annual return of 12.0% over the last 5 years. During that time, the average risk-free rate was 0.5% and the average market return was 5.0%. If the fund has beta of 1.30, what was its annual alpha? Answer in percent, rounded to two decimal places. (e.g., 4.32% = 4.32). 2. If the risk-free rate is 1.2% and the expected market return is 6.0%, what is the WACC of the company with the following characteristics? Answer in percent, rounded to two decimal places. Market value of debt: $800 million Market price of each share: $8 Number of shares outstanding: 100 million Tax rate: 15.0% The average yield on current debt (pre-tax cost of debt): 6.0% Beta: 0.9

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