What was the market risk premium during these ten years

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1. The average annual return on an Index from 1996 to 2005 was 13.20 percent. The average annual T-bill yield during the same period was 3.55 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal place.)

2. Nanometrics, Inc., has a beta of 3.17. If the market return is expected to be 11.35 percent and the risk-free rate is 4.10 percent, what is Nanometrics’ required return? (Round your answer to 2 decimal places.)

Reference no: EM132033983

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