1. Consider two stocks A and B and a market index M with the following past returns: Month A 2 3 3 5 9 B 2 M 1.5 4 1 3 4 The risk-free rate is 1%. a. Write the estimated market model equations for both stocks and a portfolio composed of 60% A and 40% B. b. Compute the coefficients of determinations. C. Estimate the returns at equilibrium for A and B and decide whether the stocks are over or undervalued. d. Compute Sharpe's, Treynor's and Jensen's performance measures for the portfolio. Consider a market with an 1. Consider two stocks A and B and a market index M with the following past returns: Month A 2 3 3 5 9 B 2 M 1.5 4 1 3 4 The risk-free rate is 1%. a. Write the estimated market model equations for both stocks and a portfolio composed of 60% A and 40% B. b. Compute the coefficients of determinations. C. Estimate the returns at equilibrium for A and B and decide whether the stocks are over or undervalued. d. Compute Sharpe's, Treynor's and Jensen's performance measures for the portfolio. Consider a market with an