Expected Return:
a) Suppose the beta of Company A is 1.9, the risk-free rate is 2.6 percent, and the market risk premium is 5 percent. Calculate the expected return for Company A.
b) Suppose the beta of Company A is 1.25, the risk-free rate is 1.8 percent, and the return on the market is 8 percent. Calculate the expected return for Company A.