1. The following information are available to you as a portfolio manager. Stock Variance Beta Eagles Fox Giant Hawks Estimated Return (percent) 12.00 9.20 15.50 14.00 121 81 144 121 0.8 0.9 1.5 1.2 You expect a Treasury Bill rate of 5 percent, the KLCI Index return and variance of 12 percent and 100, respectively. By using SML, REQUIRED: Calculate the expected return for each stock and identify which stock is undervalued, overvalued, and fairly valued. Based on your answer, sketch and plot the SML. [15 marks]