The current market price of a security is $40, the security's expected return is 13%, the riskless rate of interest is 7%, and the market risk premium is 8%.

a. According to CAPM, what is the current beta of this security?

b. What will be the beta of this security if the covariance of its rate of return with the market portfolio doubles?

c. According to CAPM, what is the new expected return on this security?

d. What is the new price of this security?

e. How is your result consistent with our understanding that assets with higher systematic risks must pay higher returns on average?

**SHOW ALL FORMULA AND STEPS PLEASE. Explain. Thank you!