1. Required Return If the risk-free rate is 8.1 percent and the market risk premium is 2.2 percent, what is the required return for the market?
A. 5.9%
B. 2.2%
C. 10.3%
D. 8.1%
2. Average Return The past five monthly returns for K and Company are 5.45 percent, 5.33 percent, -.85 percent, 4.45 percent, and 8.45 percent. What is the average monthly return?
A. 2.044%
B. 1.903%
C. 4.906%
D. 4.566%