Suppose the market portfolio has an expected return of 10% and a volatility of 20%, while Microsoft’s stock has a volatility of 30%. Microsoft’s equity cost of capital is 10%. Based on this information, which statement is most likely to be correct? (assume that all assumptions of CAPM are satisfied) 

Microsoft’s beta is lower than 1. 

There is not enough information to determine Microsoft’s beta. 

Microsoft’s beta is 1. 

Microsoft’s beta is higher than 1.