An analyst uses a 3-factor model, the tendency that ASII shares have a sensitivity to GDP per capita, inflation, and interest rates as follows:

 

Factor	Beta	Expected Value	Actual Value
GDP per capita (USD/capita)	0.00005	4,200	4,400
Inflation	-0.1	3.50%	3.60%
Interest rates	-0.2	4.50%	5.00%

The expected return from ASII before the announcement of the actual value of the data for the three factors is 10.5%

.
a. What is the systematic risk of ASII?

b. If one year ahead management announces that electric car sales will increase rapidly so that it will add 1 percent expected return from ASII, what is the value of the revised expected return after the announcement of some of the new information (increase in ASII performance, GDP per capita, inflation, and interest rates?) ?