17. The following information is about the expected performance of Stock X and the stock market. (%) State of Probability of state of economy economy Boom 0.15 Good 0.25 Poor 0.35 Very Bad 0.25 Rate of return if state occurs Stock X Stock market (%) 20 18 8 7 -5 -4 -12 -11 a) Determine the expected rates of return of both Stock X and the stock market. b) Determine the standard deviations of both Stock X and the stock market. c) Find out the covariance of returns between Stock X and the stock market. d) Calculate the beta of Stock X c) The price of Stock X is $30 now. Based on John's forecast, the price of Stock X will rise to $31 by the end of the year. He expects that the stock will pay $1.5 dividend by the end of the year. The risk-free rate is 1%. Based on your answer in part a) and d), evaluate with explanation if this stock is fairly priced