Question 3 [10 Marks] Mondelo Inc. is the brewer of Corona Extra beer whose production has been suspended by the government to slow the spread of Covid-19. Below are forward-looking annual returns under three different states of the world for Mendelo stock and the market portfolio: State probability 0.2 State of the world Alert Level 4 Alert Level 2 Back to Normal Mondelo return -0.25 0.1 0.3 Market return -0.1 0.05 0.15 0.4 0.4 a) Calculate the forward-looking beta of Mondelo Inc. [6 Marks] b) Assume that the CAPM correctly prices Mondele - that is. Modele's expected return is the same as its CAPM required rate of return. What is the risk-free rate? [4 Marks]