N N Afriend believes that the stock of Zip incorporated is going to rise from is current price of 55200 to $65.00 per share over the next year Zp does not pay a dividend. The market risk premium is 55 percent and the risk-free rate is 45 percent. The standard deviation of Zip Shares in 152 percent. The standard deviation of the market is 168 percent The correlation coefficient of Zip and the market is 09. 1. What is the estimated holding period return on Zip stock based on the information provided by your friend? 2 What is your estimate of Zips Beta based on the data provided? 31 3. What is the expected rate of return for Zip based on the room and tisk information you have collected? Regardless of your answer to question above assume an expected retum of 10 25% for stock is Zip over or under valoed? Overvalued 6. Ale equal based upon your answer to question 4 bove, do you recommend purchase Zip shares at this time? No