You run a regression of monthly returns of Mapco Inc., an oil and gas-producing firm, on the S&P 500 index, and come up with the following output for the period 2013 to 2017:

Intercept of the regression = 0.06%

Slope of the regression = 0.46

Standard error of X-coefficient = 0.20

R-squared = 5%

If the risk-free rate is 3% and market risk-premium is 5%, what is the estimated cost of equity?

How would you characterize the quality of the beta? What alternatives would you suggest?

all calculations and explanations should be explicitly shown