The risk-free rate is 5 percent and the expected market


1. Find the total amount that must be repaid on the following note described.

$8,553 borrowed at 14.5% simple interest

What is the total amount to be repaid 3 years, 125 days later? (Round your answer to the nearest cent.)

2. The risk-free rate is 5 percent and the expected market risk premium is 7 percent. What is the expected rate of return on a stock with a beta of 1.2? 19.4 percent 13.4 percent 8.4 percent 14.4 percent 12.0 percent

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Financial Management: The risk-free rate is 5 percent and the expected market
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