Hi, As per the HOMEWORKLIB RULES, in case of multiple questions, I need to solve the first question.
7. The expected return is computed as shown below:
= risk free rate + beta x (return on market - risk free rate)
= 0.04 + 2 x (0.07 - 0.04)
= 10.0%
I request you to please post remaining questions separately, since as per the guidelines in case of multiple questions, I need to solve the first question.
Feel free to ask in case of any query relating to this question
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