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 Mondelo stock and the market portfolio: Mondelo return -0.25 State of the world Alert Level 4 Alert Level 2 Back to Normal State probability 0.2 0.4 0.4 Market return -0.1 0.05 0.15 0.1 0.3 a) Calculate the forward-looking beta of Mondelo Inc. [6 Marks] b) Assume that the CAPM correctly prices Mondelo that is, Modelo's expected return is the same as its CAPM required rate of return. What is the risk-free rate? [4 Marks]