The required rate of return for the security ABC is 13%. The risk- free rate is 7% and the market average return is 12%.

a-What is the beta of the security? Is the stock riskier or less risk than the market? Explain your answer.

b-ABC expected dividend in 2023 is $2. Use the constant growth model to determine the fair price of the stock (the average growth rate of the dividends is 6%).

c-Will you buy the ABC stock if it is sold in the market for $ 28?