[3] Cost of Equity The table lists the market index and the stock price of Company ABD. The risk-free rate is 2.26%. Calculate: a. standard deviation of the returns on the stock of ABD (use all of the observations) b. expected return on the stock market , defined as the average rate of return on the market index c. beta (3) for the stock of Company ABD d. cost of equity re for Company ABD, using the Capital Asset Pricing Model. 2016 2015 2014 2013 2012 2011 2010 2009 2008 Market index 21502,47 19781,48 18401,37 16838,02 16242,43 13423,50 13032,52 11636,18 12000,00 Stock of Company ABD 72.57 61.35 55.12 46.25 40.69 31.24 27.89 21.62 24.55