10. The Capital Asset Pricing Model and the security market line Keith holds a portfolio that is invested equally in three stocks (WDWA- W 1/3). Each stock is described in the following table: Stock Beta Standard Deviation Expected Return DET 0.7 AIL 1.0 INO 1.6 25% 38% 34% 8.0% 10.0% 13.5% An analyst has used market- and firm-specific information to make expected return estimates for each stock. The analyst's expected return estimates may or may not equal the stocks' required returns. The risk-free rate [Rr] is 6%, and the market risk premium [RPMj is 4%. Use the following graph with the security market line (SML) to plot each stock's beta and expected return. Tool tip: Mouse over the points on the graph to see their coordinates