Suppose the risk-free rate is 2.75%, the expected market return is 13.5%, and Hi-Growths share has a beta of 1.35.

A. Based on the CAPM, what is the expected return on this share? Show all work and formula(s) clearly. Round only the final answer to two decimal places, where applicable.

B. Compare the beta and expected return of this share with the market beta and expected market return. Include relevant figures in your discussion; relate these figures with the concept of risk and expected return.