Consider the following stocks, all of which will pay a liquidating dividend one year from now and nothing in the interim:

	Market Capitalization ($ million)	Expected Liquidating Dividend ($ million)	Beta
Stock A	788	1,000	0.98
Stock B	750	1,000	1.65
Stock C	884	1,000	1.15
Stock D	984	1,000	1.02

a. Calculate the expected return of each stock.

b. What is the correlation between the expected return and market capitalization of the stocks?

a. Calculate the expected return of each stock.

The expected return of stock A is %. (Round to two decimal places.)