Question 3. The expected return on a stock does not mean that this return is actually being generated. There may be a difference between the actual and the expected in any time period. Interpret the following situation: a stock has an estimated Beta of 0.7 and a current stock rate of return of 7% where the risk-free rate is 5% and the return on the market index is 10%. [Hint: the expected return using the CAPM formula is? The actual return is?]