Question b: The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities. Your manager asks you to perform a basic analysis on stock ABC using CAPM. You have collected the following information: The market return is 9%, the risk-free rate is 5%. To get the beta, a co-worker runs a regression analysis for you based on historical returns and presents the results below. What is the expected return of stock ABC? Regression Statistics Multiple R 0.60 R Square 0.35 Adjusted R Square 0.34 Standard Error 0.08 Observations 60 Coefficients Standard Error t Stat P-value Intercept 0.01 0.01 0.91 0.37 The market excess return 1.20 0.21 5.65 0.00 the expected return of stock ABC will by (increase or decrease) (a % number here)