Here is a result of a regression of excess GE stock return on excess market (S&P500) index return, Rge-Rf=+(Rm-Rf)+ from Excel. Using this result, answer the following questions

1. The market risk exposure of this stock is

2. The characteristic line for this stock is Rge-Rf = ___ + ___ (Rm-Rf)

3. The stock is __ % riskier than the market.

4. As per CAPM, the expected market return given an expected return on a security of 11.35 % and a risk-free interest rate of 5% would be ___ %.

67. Multiple R R-Square Adjusted R-Square Standard Error Observations 0.35 0.12 0.02 38.45 12 Coefficients Standard Error 4.05 15.44 1.32 0.97 Intercept Market 1-Stat 0.26 1.36 p-Value 0.80 0.10