Genting Berhad is a Malaysian conglomerate with holdings in

plantations and tourist resorts. The beta estimated for the firm,

relative to the Malaysian stock exchange, is $1\mathrm{.}15\%$ and the long

term local currency risk$-$free rate in Malaysia is $11\mathrm{.}5\%.$a$.$ Estimate the expected rate of return on the stock in the

local currency.b$.$ If you were an international investor, what concerns $($if any$)$

would you have about using the beta estimated relative to the

Malaysian index? If you do$,$ how would you modify the beta?