$188cmid=103519&page a. The Capital Asset Pricing Model (CAPM) is used to evaluate the relationship between systematic risk and expected return for assets, particularly stocks. Explain the role of each of the three components of the CAPM model in the stocks evaluation process. (Marks: 6) b. Discuss why financial analysts prefer the CAPM model over other evaluation models? (Marks: 6) A finance manager at Oman Beverages Company wants to invest OMR 50,000 in the capital market Given the below information, calculate the expected returns by using the CAPM model = 2.00% = 8.50% -0.78 Risk free rate (R) Market rate (RM) Beta (B) (Marks: 7) d. Following the CAPM model, how do you determine whether stocks are undervalued or overvalued? (Marks: 6)