3. Jaja has been offered a few investment opportunities in the stock market. The information of the investment opportunities are as follow: Jaja telah ditawarkan beberapa peluang pelaburan dalam pasaran saham. Maklumat berkenaan peluang pelaburan tersebut adalah seperti berikut:

Stock	Beta	Expected Return(%)
A	0.5	8
B	1.3	15
C	1	10
D	1.6	15
E	0.7	10
F	0.3	2

Risk Free Rate is 10% and Market Risk is 12%. Based on the information above, answer the questions below: Kadar Bebas Risiko ialah 10% dan Risiko Pasaran ialah 12%. Berdasarkan maklumat di atas, jawab soalan berikut: a. Calculate the Required Rate Of Return. (6 marks)

b. Illustrate the Security Market Line(SML). (3 marks)

c. Determine the stock which are undervalue and overvalue. (1 marks)