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The risk-free rate is currently 6.00%. In addition, you have the following information: Company Expected Return Beta Microsoft (MSFT) 9.15% 0.38 Orange LLC 14.80% ? Alpine Tanning ? 1.44 Australian Snowplows 11.39% 0.95 Horseflies United 21.81% 1.64 A) You know that Microsoft (MSFT) is correctly priced because an army of analysts and thousands of institutional investors hold it. What does this tell you about the market return that investors seem to expect per year? B) What beta for Orange LLC would make investor expectations consistent with your findings in part A)? C) Given the expected market return in A), what is the correct expected return for Alpine Tanning? % D) Given the expected market return in A), are shares of Australian Snowplows overvalued, undervalued or fairly valued? (No answer given) Oovervalued Ocorrectly valued Oundervalued E) Assume that the market risk premium remains the same as before. What would the risk-free rate need to be in order for investors in Horseflies United to have correct return expectations? The risk-free rate is currently 6.00%. In addition, you have the following information: Company Expected Return Beta Microsoft (MSFT) 9.15% 0.38 Orange LLC 14.80% ? Alpine Tanning ? 1.44 Australian Snowplows 11.39% 0.95 Horseflies United 21.81% 1.64 A) You know that Microsoft (MSFT) is correctly priced because an army of analysts and thousands of institutional investors hold it. What does this tell you about the market return that investors seem to expect per year? B) What beta for Orange LLC would make investor expectations consistent with your findings in part A)? C) Given the expected market return in A), what is the correct expected return for Alpine Tanning? % D) Given the expected market return in A), are shares of Australian Snowplows overvalued, undervalued or fairly valued? (No answer given) Oovervalued Ocorrectly valued Oundervalued E) Assume that the market risk premium remains the same as before. What would the risk-free rate need to be in order for investors in Horseflies United to have correct return expectations