Suppose Company ABCs returns fluctuate with the market in the following manner: \ \ Scenario\ \ Probability\ \ Return: ABC (%)\ \ Return: Market (%)\ \ 1\ \ 0.25\ \ -5%\ \ -2%\ \ 2\ \ 0.25\ \ 10%\ \ 13%\ \ 3\ \ 0.25\ \ 15%\ \ 8%\ \ 4\ \ 0.25\ \ 20%\ \ 13%\ \ \ \ Assume the risk free rate is 4% \ \ Calculate the beta for Company ABC.\ What is the beta for the Market?\ What is the required return for Company ABC?\ If the required return for Company ABC is different than the expected return, what will happen to Company ABCs share price?\ Another firm, Company XYZ has a covariance with the Market of -0.001. What would be the firms required return as per CAPM?\ Why is Company XYZs required return less than the risk free rate?