3. Suppose you obtain the betas and expected returns for the following five Percentage Company BetaExpected of Money ReturnInvested ATV Industries Seattle Shoe Lightning Communications Athletic Wear Inc 2.241 17.00% 1.01 1351 11.30% 1.36 0.13 30% 5% 30% 25% 10% 9.05% 5.32% 3.79% The risk free rate is 30% and the retum on the market portfolio is 9.10%. a. Compute the required rate of return for each stock. Show your calculations. (5 Points) b. On the graph paper provided, plot the required rate of return and the expected rate of return for each stock. Be sure to clearly note the Security Market Line which is the CAPM in graphic form. Also, make sure you clearly label the axes on your graph and the points plotted for each stock. (10 Points) What does it mean if a stock is in equilibrium? Explain. (4/ Points) c. d. Is each stock referenced in this question in equilibrium? Explain. (5 Points) e. Assume you form a portfolio with the five stocks and allocate your investment in each stock according to the percentages given in the table above. For the portfolio you formed, please compute the following items. i.The required rate of return on the portfolio. Show your ii.The expected rate of return on the portfolio. Show your iii. The beta of the portfolio. Show your calculations! (2 calculations! (2 Points,) calculations! (2 Points) Points)