10. The Capital Asset Pricing Model and the security market line Wilson holds a portfolio that invests equally in three stocks (wA=wB=wC=1/3). Each stock is described in the following table: An analynt has used market- and firm-specific information to generate expected return estimates for each stock. The analyst's expected return estimates may or may not equad the stocks' required returns. You've also determined that the risk-free rate [rFl] is 4%, and the market risk premlum [ RPM is 5%. Given this intormation, use the following graph of the securay market line (SML) to plot each stock's beta and expected return on the graph. (Note: Cick on the points on the groph to see their coordinates.) Given this information, use the following graph of the security market line (SML) to plot each stock's beta and expected return on the graph. (Note: Cick on the points on the graph to see their coordinates.) A stock is in equlibrlum if its required return equals its expected return. In general, assume that markets and stocks are in equilibrium (or fairly valued), but sometimes investors have different opinions about a stock's prospects and may think that a stock is out of equilibrium (either undervalued or overvalued). Use the analyst's expected retum estimates to determine if this analyst thinks that esch stock in wilson's portfolio is undervalued, overvalued, or failly valued