Question 1
If Geek Computer has a beta of .8, the return from Treasury bills is 3% and the return from the market portfolio is 20%, what is the required return from Geek stock?
◦ 16.6%
◦ 15.7%
◦ 22.8%
◦ 20.0%
◦ 17.5%
Question 2
If Geek Computer has a beta of 1.1, the return from Treasury bills is 3% and the return from the market portfolio is 20%, what is the required return from Geek stock?
◦ 20.0%
◦ 22.8%
◦ 15.7%
◦ 18.7%
◦ 21.7%