Question: Please show the calculation, if using Excel, please show the formulas. Practice question: Part a : What annual rate of return should an investor expect

Please show the calculation, if using Excel, please show the formulas.

Practice question:

Part a: What annual rate of return should an investor expect for a stock that has a beta of .8 when the market is expected to return 14% and T-bills offer 6%?

*I'm thinking this needs the CAPA formula E(r) = RFR + B (Rm RFR)

Part b: You own a stock trading on January 1 at $40 and on December 31 at $43.50. What annual dividend do you need to earn an annual rate of 10%?

*Does this involve to using the CAPA formula with some algebra to solve for the annual rate ?

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