Beta and Expected Return. Assume that the risk-free rate of return is 8 percent, the required rate of return on the market is 13 percent, and stock X has a beta coefficient of 1.5. (a) What is stock...

Beta and Expected Return. Assume that the risk-free rate of return is 8 percent, the required rate of return on the market is 13 percent, and stock X has a beta coefficient of 1.5. (a) What is stock X’s required rate of return? (b) What if the beta increases to 2? (c) What if the risk-free rate decreases to 6 percent, assuming the beta is still 1.5?