Using beta You have developed the following predicted returns for a company's stock: State of the Economy Recession Average growth High growth Boom Probability Rate of Return .15 (40%) .35 15% .35 25% .15 40% The company's beta is 1.45. The risk-free rate of interest is 6% and the expected return on the market is 12%. (Rounding: Do not round intermediate calculations. Enter your final answers as decimals with four decimal places, e.g., if your answer is 9.5%, you would enter .0950.) a. Based on CAPM, what is the required rate of return on the stock? b. What is the expected return on this stock