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Question 2 5 Points (a) A stock has an expected return of 13.5%, the risk-free rate is 5.2%, and the market risk premium is 8.5%.

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Question 2 5 Points (a) A stock has an expected return of 13.5%, the risk-free rate is 5.2%, and the market risk premium is 8.5%. What must the beta of this stock be? Show your work. (3 points) (b) What does the beta of the stock (in question (a)) signify in terms of systematic risks? (2 points) Use the editor to format your answer Question 3

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