(a) A stock has an expected return of 14.7%, the risk-free rate is 2.5%, and the expected return in the market is 5.8%. What must the beta of this stock be? Show your work. (5 points)

(b) What does the beta of the stock (in question (a) signify in terms of systematic risks? (2 points)

(c) Stocks are expected to rise this year. As an investor how would we interpret the results from question (a)? How does the Beta of this stock compare its Standard Deviation, and which is more meaningful to an investor? Explain your answer. (2 points)