Problem 11-15 Using CAPM [LO 4]

A stock has an expected return of 10.1 percent, its beta is 1.04, and the risk-free rate is 6.45 percent.

Required:

What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Expected return

%

Problem 11-16 Using CAPM [LO 4]

A stock has an expected return of 13.8 percent and a beta of 1.19, and the expected return on the market is 12.8 percent.

Required:

What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Risk-free rate

%