Question 7 (8 points) Investors expect the market rate of return in the coming year to be 13%. The risk-free rate is 3%. QQAG has a beta of 1.7. The market value of its outstanding equity is $200 million. (1) What is your best guess currently as to the expected rate of return on QQAG's stock if you believe that the stock is fairly priced?. 4 4 (2) If the market return in the coming year actually turns out to be 10%, what is your best guess as to the rate of return that will be earned on QQAG's stock? 4 (3) Continue from (2) and suppose now that QQAG loses a surprising lawsuit during the year. QQAG's stock return during the year turns out to be 10%, what is your best guess as to the settlement amount paid by QQAG