Based on the past 60 months of data for a common stock you estimate the following

	Mean	SD
Stock	1.7%	12%
S&P 500 premium	0.6%	5%

You also estimate the stock beta using the past 60 months of data, R_it = 0.8 + 1.2 R_mt + e_it (1.70) (0.27) The current T-bill is 0.7% monthly (a) Using the historical return, what is the expected return of the stock? (b) Using the CAPM, what is the estimated return of the stock? (c) According to some analysis the value of Beta should be 0.90 for that common stock. Do you agree or disagree?