***Please show work. Thanks!***

A financial analyst with J\&K Steel, Inc. (J&K) has been assigned to calculate the company's cost of equity using the Capital Asset Pricing Model (CAPM). The analyst has gathered J\&K stock return data and has used the data to determine that J&K 's stock return covariance with the market portfolio is 0.000816. He has also determined that the market portfolio variance of returns is 0.00068. He has further learned that the market risk premium is 7.0% and that the risk-free rate is 3.25%. With these data, the analyst has determined that J\&K's stock beta is