please answer this question and show all work

1 Question 2 (3 Marks) Anna is a Vice President at the J Corporation. The company is considering 3 investing in a new factory and Anna must decide whether it is a feasible 4 project. In order to assess the viability of the project, Anna must first calculate 6 the rate of return that equity holders expect from the company stock. The 5 annual returns for J Corp. and for a market index are given below. Currently, the risk-free rate of return is 1.6% and the market risk-premium is 3.5% 3 I Enter your Final Ans a) What is the beta of J Corp.'s stock? 0 (1 MarkX Round your answer to two decimal places) b) Using the CAPM model, what is the expected rate of return on J Corp. stock for the coming year? 2 (2 Marks)(Round your answer to one one-hundreth of a percent) J Corp . Market Retum Return 3 Year (%) 4 1 -4.17 -2.00 5 2 17.29 8.73 24.47 12.32 7 4 26.47 13.32 5 -29.77 -14.80 9 31.49 15.83 7 25.19 12.68 25.95 13.06 2 9 9.83 5.00 3 10 19 29 9.73 4 11 -11.77 -5.80 12 13.77 6.80 Complete your rough work in the space below 6 3 6 NO ON 8 5 5