JT Corp.'s uses CAPM for the investment appraisal and is financed by debt and equity only. JT estimates its WACC at 12% and its capital structure includes 75% debt and 25% equity. JT pays tax at 20% and its pre-tax cost of debt amounts to 12.5%. The risk-free rate is currently 6% and the market risk premium equals 8%. Please calculate the beta of JT (15 marks) and comment if you would add JT to your portfolio as a defensive stock (5 marks).