Question: 4. (20 points} You estimate that the expected return on a retailing rm's stock is 15%. Based on historical data you estimate the market risk

 4. (20 points} You estimate that the expected return on a

retailing rm's stock is 15%. Based on historical data you estimate the

4. (20 points} You estimate that the expected return on a retailing rm's stock is 15%. Based on historical data you estimate the market risk premium to be 8.5% and the current risk-free rate is 5%. If the expected return for this stock is described by the CAPM, what is its beta

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