Semitool corp. has an expected excess return of 6% for next year. however, for every unexpected 1% change in the market, semitool's return responds by a factor of 1.2. suppose it turns out that the economy and the stock market do better than expected by 1.5% and semitool's products experience more rapid growth than anticipated, pushing up the stock price by another 1%. based on this information, what was semitool's actual excess return?

Suppose that a candy maker owns a building and is renting part of the building's space to a doctor. further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. while the doctor cannot insist on a quiet environment, the doctor could move to a quieter building. however, rent in the next best building is $350/month more than rent in the noisy building. the candy maker can adopt a new technology that eliminates the noise for $275/month. given this situation, can the doctor find a private solution with the candy maker that will make both better off?