The data in the table above show the annual rate of return, in percentage, for Stocks $1,2,$ and $3$

and the market for the $15-$year period. The risk$-$free rate is $4\%.$

a$)$ What are the values of $$ for all $3$ stocks assuming CAPM?

b$)$ What are the Sharpe ratios for all $3$ stocks and the market?

c$)$ What conclusion can you draw from the answer in question b$)?$

d$)$ Assuming this is a single$-$factor model with the market being the factor, is this a good

predictor of the individual asset returns? Explain why or why not.