(3.) Suppose you were to run a CAPM regression of the following specification:

r_i = r_f + B_i (r_m,t ??- r_f,t) + E_t

The regression results are provided below:

Variable	Coefficient	T-statistic	P-Value
Intercept	0.034	2.046	0.043
Beta	1.203	2.618	0.010

(a.) Interpret the result you found for the intercept of the regression. Is it statistically significant at the 1.00% level?

(b.) Suppose this firm was expected to pay a dividend of $1.46 next year and its dividends are expected to grow at a constant rate of 2.10%. If the market risk premium is expected to be 11.00%, what is a fair value for this stock according to the CAPM?