Question 6 - Required Return [2 points]: Suppose that IBR = 3% and a = 10%. What is the appropriate required rate of return for Stock K that has a beta coefficient equal to 2? Question 7 - Beta Computation [2 points): Suppose TBE = 4%. DM9%, and ix = 11.5%. Calculate Stock K's beta. BK. Question 8 - Realized Rate of Return (2 points]: Stock A and Stock B have the following historical retums: Year Stock A's Returns, IA Stock B's Returns. IR 2008 -10.00% -3.00% 2009 18.50% 21.29% 2010 38.67% 24.25% 2011 14.33% 3.67% 2012 23.00% 28.30% Calculate the average rate of retum for each stock during the period 2008 - 2012