3. Below are the historical yearly returns for Company X and the appropriate Market Index (which represents the market portfolio in this case) Assume a risk-free rate of 2.5% a) Find the beta of Company X. b) What is the expected return of Company X based on the CAPM Year 2013 2014 Yearly rates of return Market Company X Index 0,092 0,118 0,050 0,122 -0,034 0,035 -0,018 0,047 0,076 0,082 0,037 0,101 2015 2016 2017 2018