Question: Please show all work using formulas not a financial calculator. 1. You have observed the following returns over time Year stock A 20% 13% 490

Please show all work using formulas not a financial calculator.

1. You have observed the following returns over time Year stock A 20% 13% 490 32% market 13% 20% 14.75% 10% avg 15.90% 9.20% A) (8 points) What is Stock A's beta? B) (2 points) If the risk free rte is 3% and the market risk premiumis 6% what is the required return for stock A

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