a) Stock ABC has a beta of .7, the risk-free rate is 3%, and the expected market returns are 4%. Using the Capital Asset Pricing Model, what are the expected returns for stock ABC? b) Using CAPM, what is the cost of equity if the risk-free rate is 4%, market return is 6%, and beta is 1.2?

Correctly show the formula for each calculation.

Clearly show your work for each calculation.

Make sure to clearly show the answer.

Please provide a Microsoft Excel, Access or Word table to show the values and calculations. Reading handwriting can be difficult.