3. Given the following information for the two stocks: Stock Expected Return Standard Deviation Investment Beta A B 16% 15% 3% 10% $30,000 $20,000 1.2 0.8 You construct a portfolio composing of stocks A and B according to the above information. Assume that the risk free rate is 6% and the market risk premium (MRP) is 9%. Use the CAPM analysis to numerically determine whether this 2-stock portfolio is fairly priced? What is your investment recommendation on this portfolio? Explain precisely!