Security	Beta	Standard Deviation	Expected Return
S&P 500	1.0	20%	8.0%
Risk-free security	0.0	0%	4.0%
Stock A	0.6	15%	( ) %
Stock B	( )	30%	12.0%
Stock C	1.2	25%	( )%

Use the following information to answer the questions.

1. Figure out the market risk premium using S&P 500 and Risk-free security.

2. Figure out the expected return for Stock A using CAPM.

3. Figure out the beta for stock B using CAPM.

4. Stock C has an average return of 10%. Figure out the following.

a. Figure out the expected return using CAPM.

b. Figure out the abnormal return, alpha ().

c. Determine whether you buy or sell Stock C based on the alpha.