Problem 1 (20 pts): Stock A has generated the following monthly rates of return over the preceding 6 months: 3%, l 1%, 2%, 5%,-190,6% (annualized rates). You have estimated the stock's beta to be 1.3. The risk-free rate is 1% and the market risk premium 8%. What is the expected rate of return on the stock in the next month? Find the stock's Jensen's alpha. Would you recommend buying or shorting this stock