A) Compute the beta of the stock from the data given below: Years 1 2 3 4 5 6 Stock Return (%) -13 2 7 12 6 14 Market Return (%) -7 9 9 21 14 18 B) What do you understand by Asset Beta of a company? How does it differ from its Equity Beta? If cost of equity depends on Equity Beta, why does Asset Beta needed? Explain