Suppose the$$ risk$-$free return is $3\mathrm{.}06\%3\mathrm{.}06\%$ and the market portfolio has an expected return of $11\mathrm{.}48\%11\mathrm{.}48\%$ and a standard deviation of $14\mathrm{.}99\%14\mathrm{.}99\%.$ PepsicoPepsico stock has a beta of $0\mathrm{.}780\mathrm{.}78.$ What is its expected$$ return?

Question content area bottom

Part $1$

The expected return of PepsicoPepsico stock is