Suppose that the correlation coefficient between the returns of IBM and the market was $0\mathrm{.}72,$ the

standard deviation of returns of IBM was $22\%,$ the standard deviation of the market was $18\%,$ the

risk free rate was $6\%,$ and the expected return on the market was $12\%.$

a$.$ What is your estimate of IBM's beta given the information above?

b$.$ What is IBM's expected rate of return according to the CAPM?