[/Question 4. Euro Airlines' stock has a beta of 1.6. Its stock price has risen from 130 pence to 156 pence over the last year. During the same period, the return on the market portfolio was noted to be 11% while the Treasury bill yielded 2%. (a) Calculate the stock's last year's actual return. (b) Compute the expected return of Euro Airlines' stock using CAPM. (c) Recommend whether the stock should be selected for investment. Show your working out