1. Stock X has a Beta of 0.88 . The risk-free rate is 4.8% and the expected return of the market is 9.1%. a. What is the E[ret] of Stock X from the CAPM model? 2. Stock A has a market beta of 1.4 , a size beta of -0.3 , and a value beta of 0.2 . The return on small and big stocks is expected to be 10.8% and 4.9% respectively. The return on high and low value stocks is expected to be 11.9% and 5.1% respectively. The expected return on the market is 9.2% and the risk-free rate is 2.6%. a. What is the expected rate of return for Stock A ? 3. Stock Z has a market beta of 1.3 , a size beta of 0.5 and a value beta of -0.2 . Determine if each statement is True or False. a. Stock Z is a defensive stock b. Stock Z is most likely a small stock c. Stock Z is most likely a growth stock