d) how is your result consistent with our understanding that assets with higher systematic risks must pay higher returns on average?

Question 3 The current market stock price of Zoombra Corporation is $40, the security's expected return is 10%, the riskless rate of interest is 2%, and the return on the market portfolio is 12% a. What is the current beta of the Zoombra's stock? b. What will be the expected return on Zoombra's stock, if the covariance of its rate of return with the market portfolio doubles? What will be the Zoombra's price, if the covariance of its rate of return with the market portfolio doubles