Problem 4 and 5 of lesson 11 assignment

(Please show me the steps)

Problem 4

An analyst gathered the following information for a stock and market parameters: stock beta = 1.28; expected return on the Market = 12.90%; expected return on T-bills = 1.90%; current stock Price = $8.26; expected stock price in one year = $12.14; expected dividend payment next year = $2.41. Calculate the a) Required return for this stock (1 point):

b) Expected return for this stock (1 point):

Problem 5

Q5) The market risk premium for next period is 9.40% and the risk-free rate is 1.60%. Stock Z has a beta of 1.01 and an expected return of 14.20%. What is the: a) Market's reward-to-risk ratio? (1 point):

b) Stock Z's reward-to-risk ratio (1 point):