1Assignment 1 Corporate Finance II (ACTSC372) Due date: Feb 4, 5:00pm. Outside MC 6016 _______________________________________________________________________ 1.Consider the following two stocks: Beta Expected Return Murck Pharmaceutical 1.430% Pizer Drug Corp 0.719% Assume that capital asset pricing model holds. Based on the CAPM, what is the risk-free rate? What is the expected return on the market portfolio? 2.