1. What return measure best allows someone to compare asset returns over different length time periods?
A) Holding Period Return
B) Annualized Returns
C) Net Portfolio Return
2. Stock A has a beta of 0.4, and investors expect it to return 3%. Stock B has a beta of 1.6, and investors expect it to return 9%. Use the CAPM to calculate the market risk premium and the expected rate of return on the market. (Enter your answers as a whole percent.)