stock has an expected return of $13$ percent $($according to the CAPM theory$).$ When

the risk$-$free rate is $7$ percent and the $$market risk premium$$is $8$ percent, what must

the beta of this stock be$?($Hint: Recall the de$$nition of the market risk premium.$)$

$($a$)0$:$60$

$($b$)0$:$75$

$($c$)1$:$20$

$($d$)1$:$50$