a. You are analyzing a stock that has a beta of 1.24.The risk-free rate is 4.2% and you estimate the market risk premium to be 5.3%. If you expect the stock to have a return of 13.4% over the next year, should you buy it? Why or why not? Calculate the expected return according to the CAMP.

b. Suppose Autodesk stock has a beta of 2.10, whereas Costco stock has a beta of 0.69. If the risk-free interest rate is 6% and the expected return of the market portfolio is 14.0%, what is the expected return of a portfolio that consists of 70% Autodesk stock and 30% Costco stock, according to the CAPM?

c.Suppose the risk-free return is 4.1% and the market portfolio has an expected return of 11.5% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.28. What is its expected return?