1. The stock of Walt Disney Corp. has a standard deviation of 30%. The market has a standard deviation of 20%. The correlation between Disney and the market is 0.6. The risk-free rate of interest is currently 3%, but it has been 4% (on average) for the past 20 years. It is mid-June and the market is down 15% year-to-date. Disneys stock has been up 7% per year for the past 10 years. You expect (on average) the market to outperform the risk-free rate by 5.7% per year in the future. According to the CAPM, what is the expected return for Disneys stock?