4. The beta on Amazon Inc. against the market (S&P 500 Index) is 1.15. Assume that the return on US. Treasury bills is 2.25 percent and that the return on S&P 500 Index is 8 percent. Royal Dutch Petroleum has a correlation coefficient with Amazon of 0.3 and a Beta against S&P 500 Index of 1.20, Nokia in Finland has a Beta against S&P 500 Index of 0.85 and a correlation coefficient with Amazon of 0.9 i. Explain what beta means. ii. Calculate the required return on Amazon Inc. stock. What model are you applying? ili. If you want to create a Portfolio where Amazon will be included, which stock will be more appropriate to add in this portfolio? Nokia or Royal Dutch? Explain why