FOUR [20] 4.1. The Candy Carrots Company is registered on the stock market. The market return is 18% and the risk- free rate is 8% and Candy Carrots has beta of 1.2. The company has paid R 3 per share in dividends, and it has a constant growth of 5%. 4.1.1. Calculate the expected return of the Candy Carrots share (use the CAPM). (4) 4.1.2.What is the intrinsic value of the Candy Carrots share? (6) 4.2. Using the following information about SourPatchs investment performance during various economic conditions, estimate the expected return and overall risk (standard deviation) of this investment. (10) Economic conditions Probability Expected return Boom 0.20 +40% Normal 0.60 +15% Recession 0.20 -10%