Question: The average annual return on an Index from 1986 to 1995 was 14.70 percent. The average annual T-bill yield during the same period was 5.00

The average annual return on an Index from 1986 to 1995 was 14.70 percent. The average annual T-bill yield during the same period was 5.00 percent.

What was the market risk premium during these ten years? (Round your answer to 2 decimal places.)

If the risk-free rate is 2.60 percent and the risk premium is 4.3 percent, what is the required return? (Round your answer to 1 decimal place.)

Hastings Entertainment has a beta of 0.58. If the market return is expected to be 12.40 percent and the risk-free rate is 5.40 percent, what is Hastings required return? (Round your answer to 2 decimal places.)

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