When the return on the market portfolio goes up by 5%, the return on Stock A goes up on average by 8% and when the market portfolio return goes down by 5%, Stock A return goes down by 6%. a) Calculate the beta of this stock. b) Assuming that CAPM holds, calculate the required rate of return on this stock by assigning values for the risk-free rate and the expected return on the market portfolio depending on your own choice. (The use of the same risk-free rate and market return by different students will be treated as a cheat attempt).