Assume the risk$-$free rate is $4\mathrm{.}1\%$ and expected market risk premium is $6\mathrm{.}4\%.$ Suppose that you have observed the following returns over time:

Year

Stock A

Market

$2015$

$14\%$

$12\%$

$2016$

$15\%$

$10\%$

$2017$

$-17\%$

$-12\%$

$2018$

$3\%$

$1\%$

$2019$

$18\%$

$15\%$

$2020$

$24\mathrm{.}5\%$

$20\%$

What is the beta for Stock A and what is the required return for A based on CAPM?

Question $11$ options:

$0\mathrm{.}75$; $5\mathrm{.}82\%$

$1\mathrm{.}28$; $12\mathrm{.}27\%$

$1\mathrm{.}28$; $7\mathrm{.}04\%$

$0\mathrm{.}75$; $8\mathrm{.}88\%$