What is the beta of this stock

Question

Problem:

The common stock of Flavorful Teas has an expected return of 15.44 percent. The return on the market is 12 percent and the risk-free rate of return is 3.4 percent.

Required:

Question: What is the beta of this stock?

• 0.70
• 1.40
• 3.50
• 0.71
• 1.28

Note: Explain all calculation and formulas.