5. Using CAPM. A stock has an expected return of 15%, the risk-free rate is 4%, and the market risk premium is 8%. What must the beta ( () of this stock be? 6. Using CAPM. A stock has an expected return of 16%, its beta ( ) is 1.2 and the risk free rate is 5%. What must the expected retum on the market be? 7. Risk and Return. Stock X has a beta ( ) of 0.9 and an expected return of 10.1%. Stock Z has a beta ( ) of 1.4 and an expected retum of 14.2%. If the risk free rate is 4% and the market risk premium is 7% are these stocks correctly priced in the market? Explain