Capital asset pricing model

(Click on the kon'b in order to copy is contents into a sprpadaheet) a. Using the CAPM, what rates of rotum should Grace require for each individual secunty? b. How would your evaluation of the expected rates of retum for Grace change if the risk-free rate were to rise to 4 percent and the market risk premium were is be only 7 percent? c. Which makket risk premium scenario (from part a or b) best tiss a recessionary environment? A period of economic expansion? Explain your response. a. The expected rate of retum for security K, which has a beta of 1,13 , is 6. (Round to two docimal places)