uppose the market portfolio is equally likely to increase by 30% or decrease by 10% Also suppose that the risk free interest rate is 4% Use the beta of a firm that goes up on average by 40% when the market goes up and goes down by 20% when the market goes down to estimate the expected eturn of its stock. How does this compare with the stock's actual expected return? buse the beta of afirm that goes up on average by 11%when the market goes down and goes down by 20% when the market goes up to estimate the expected return of its stock. How does this compare with the stock's actual expected return? ause the beta of a frm that goes up on average by 40% when the market goes up and goes down by 20% when the market goes down to estimate the expected return of its stock. How does this compare with the stock's actual expected return? The beta of the stock is (Round to two decimal places.)