Assume that the market portfolio is equally likely to increase by 10%, remain stable or decrease by 5%. Security "Save" goes up on average by 6% when the market goes up, increases by 0.67% when the market doesn't change and goes down by 2% when the market goes down. What is the Beta of the stock? What is the implied risk free rate if the CAPM holds? (Note: please retain at least 4 decimal places in your calculations p

O a. 0.847 and 0.67%

Ob 0533 and 1 67%

O c 0.533 and 2.34%

O d. 0.533 and 0 67%

O e 0847 and 1.67%

9 of 30 Assume that the market portfolio is equally likely to increase by 10%, remain stable or decrease by 5%. Security "Save" goes up on average by 6% when the market goes up, increases by 0.67% when the market doesn't change and goes down by 2% when the market goes down. What is the Beta of the stock? What is the implied risk free rate if the CAPM holds? (Note: please retain at least 4 decimal places in your calculations O a 0.847 and 0.67% Ob 0.533 and 1.67% OC. 0.533 and 2.34% Od 0.533 and 0.67% Oe 0.847 and 1.67% Unsure