A stock recently has been estimated to have a beta of $1\mathrm{.}30$:

Required:

a$.$ What is the "adjusted beta" of this stock?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

b$.$ Suppose that you estimate the following regression describing the evolution of beta over time:

${}_t=0\mathrm{.}6+0\mathrm{.}4{}_{t-1}$

What would be your predicted beta for next year?

Note: Do not round intermediate calculations. Round your answer to $3$ decimal places.

a$.$ Adjusted beta

b$.$ Predicted beta