Question: Please answer the following below - 1a. TUC stock has a beta of 0.72. The risk-free rate of return is 2.76 percent and the market
Please answer the following below -
1a. TUC stock has a beta of 0.72. The risk-free rate of return is 2.76 percent and the market rate of return is 9.47 percent. What is the risk premium on this stock?
a. 2.07 percent
b. 8.57 percent
c. 4.83 percent
d. 9.77 percent
e. 5.96 percent
1b. The expected return on Cincy Book's stock is 14.15 percent while the expected return on the market is 11.34 percent. The stock's beta is 1.34. What is the risk-free rate of return?
a. 3.08 percent
b. 2.63 percent
c. 2.31 percent
d. 1.88 percent
e. 4.13 percent
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