You have run a regression of returns of Devonex, a machine tool manufacturer aga the S&P500 index using monthly returns over the last years and arrived at the following regression equation: a Return Devonex = 0.2% + 1.5*Return S&P500 The stock had a Jensen's alpha of -0.1% (on monthly basis) over this period. a) Has the stock beaten the market? (1 mark) b) Estimate the monthly Rf during the last 5 years. (1 mark) c) If the standard error of the regression beta is 0.5. Estimate the range for the regression beta at a 95% confidence Interval. (1 mark) d) If the market risk premium is 6.5%, the tax rate is 40%, estimate the cost of equity. (2 marks)