1. Following Information is available in respect of Indian stock market: Answer the following: a) What equation would represent SML? b) What is expected return as per CAPM for each of the security? c) Which of the securities are underpriced or overpriced? d) Based on your answer if you were to buy only one security which one would you buy and why? e) What expected returns an investor would have if he forms an equally weighted portfolio of all the risky securities listed above? f) What is the beta of such portfolio? g) If the actual returns turn out to be according to CAPM what returns would he realize? h) Under the world where CAPM holds what should be the beta of such portfolio? i) If the investor chooses to invest only in undervalued securities what excess returns as compared to CAPM he is expected to realize? j) Explain the investor behaviour underlying the Markowitz model. What is an efficient frontier? Explain CAL, CML and SML, what is the difference among them