1. A stock has a beta of 1.7 and an expected return of 15.1 percent. If the risk-free rate is 2.9 percent, what is the market risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
2. If annualized 90-day LIBOR decreases from 2.33% to 2.09%, a long position in a $4 million Eurodollar futures contract will have.