#1.Mercury Inc. has a Beta of 2.0 while 30-day Treasury bills are yielding a return of 4.5%. The expected return on The Market is 15%.Calculate the required return for Mercury Inc.Enter your answer as a percent. That is ten percent would be entered a
#1.Mercury Inc. has a Beta of 2.0 while 30-day Treasury bills are yielding a return of 4.5%. The expected return on The Market is 15%.Calculate the required return for Mercury Inc.Enter your answer as a percent. That is ten percent would be entered as 10 or as 10.000 but not as 10% and not as 0.10.#2.Why is it not usually appropriate to rank investments according to expected return only?a. All of these are valid reasons why you should not rank based solely upon Expected Return.b. Expected return is simply a made up statistic.c. It is just the Expected return which is not necessarily the return you will actually get next year.d. There are too many other things to consider like the nature of the companys business and the liklihood of bankruptcy.e. I should not rank them according to Expected return because I have no idea how to calculated Expected returns.f. Expected Return alone does not consider the risk of the investment.