Consider the following historical returns for the market and Stock A over the last $10$ periods:

Period Market Return $(\%)$ Stock A Return $(\%)$

$156$

$278$

$332$

$489$

$543$

$667$

$721$

$8910$

$954$

$1065$

a$.$ Calculate the beta $(\backslash$beta $)$ of Stock A relative to the market.

Beta $=$ Covriance$($A$,$ Market$)/$ Variance$($Market$)$

b$.$ Assuming the market free rate is $3\%,$ what is the expected return of stock A$.$