10. The table below shows information for 3 stocks Risk and rates of return Page 4 of 4 Security Beta Risk-free rate Expected market return Stock 1 1.8 Stock 2 1.2 Stock 3 0.6 0.02 0.035 0.015 0.06 0.06 0.06 free rates are different because they were measured in different years. Calculate the The risk-f expected (or required) return for each stock, using the Capital Asset Pricing Model (CAPM). a. What is the expected return for stock 1? b. What is the expected return for stock 2? c. What is the expected return for stock 3? 11. Use the expected return-beta equation from the CAPM. What is the expected return if the risk-free rate is 1%, beta 1.3 and the expected market return 8%? b, what is the risk-free rate if beta is 1.1, the expected return 8.4% and the expected market return 8%? C. What is beta if the risk-free rate is 1%, the expected return 13% and the expected market retum 8%? d, what is the expected market return if the risk-free rate is 1%, beta 1 3 and the expected return 13%