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:

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

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

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

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

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

Question options:

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

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

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

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