Question 22. (10 marks) Roenfeld Corp believes the following probability distribution exists for its stock. State of Probability of State Stock's Expected the Economy Occurring Return Boom 0.45 25% Normal 0.50 15% Recession 0.05 5% a) peter... und Cocost. b). If the stock has beta 1.2, market expected return is 15% and risk-free rate is 5%, what is the required return of the above stock? (3 marks) c). Is this stock overpriced or underpriced? Explain