Question: please show your steps to each part or the solution! Question 2 (3 Marks) Anna is a Vice President at the J Corporation. The company

please show your steps to each part or the solution! please show your steps to each part or the solution! Question 2

Question 2 (3 Marks) Anna is a Vice President at the J Corporation. The company is considering investing in a new factory and Anna must decide whether it is a feasible project. In order to assess the viability of the project, Anna must first calculate the rate of return that equity holders expect from the company stock. The annual returns for J Corp. and for a market index are given below. Currently, the risk-free rate of return is 1.0% and the market risk-premium is 2.2% Enter Answer Enter Answer Enter your Final Answer a) What is the beta of J Corp.'s stock? (1 Mark) 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? 22 (2 Marks)(Round your answer to one one-hundreth of a percent) J Corp. Market 13 Year Return (%) Retum (%) 14 1 0.00 0.00 15 2 14.00 7.00 16 3 24.00 1200 17 4 12.00 6.00 5 36.00 -18.00 19 6 14.00 22.00 20 0.00 0.00 21 8 26.00 13.00 22 9 6.00 3.00 23 10 16.00 8 24 11 10.00 -5.00 25 12 -20.00 - 10.00 26 Complete your rough work in the space below Question 1 Question 2 Question 3 Question Questions SID

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