3. Stock Risk and Pricing: (15 points) You are analyzing Club Auto Parts Co. The risk-free tate (rf) is 2%, the return on the market (m) is 6%, and the stock's beta (b) is 1.5. 3a. What is the required rate of return in the SML. model? (Show all work.) 3b. Club Auto Parts Co. went public five years ago. Based on the stock performance below, what is its expected rate of return? (Show all work.) Year Retum 2012 25% 2013-13% 2014 996 2015 9% 2016 11% 996 3c. Based on the above information, would you invest in Club Auto Parts stock? Why