REQUIRED RATE OF RETURN
1. Assume that the risk-free rate is 7% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 1.1? Round your answer to two decimal places. %
2. Kenny wants to save $50,000 for an initial investment toward the purchase of a home in 5 years. What must he save at the beginning of each quarter if he can earn 9% compounded quarterly?