5. FAANG stocks refer to the stocks of five flashy technological companies of the world: Facebook, Amazon, Apple, Netflix and Alphabet (which was formerly known as Google). Betas and estimated returns of these stocks are given in the table below. Based on the information given, answer the following questions: a. Calculate required returns for each stock by using capital asset pricing model. Assume risk-free rate is 9% and the expected market return is 13%. (10 pts) b. What would be your strategies for each stock as an investor? State how each stock is valued and give explanation for each. (10 pts) c. Draw security market line and plot each stock on the figure. (5 pts) d. Calculate the beta of your portfolio (5 pts) Stock Company Name Beta Required Return Estimated Return Comment Weights Investment of stocks Strategy in portfolio 15% 1.19 10% 1.20 14% 25% FB Facebook Inc. AMZN Amazon.com Inc. AAPL Apple Inc. NFLX Netflix Inc. GOOG Alphabet Inc. (Google) 1.30 -14% 10% 0.93 21% 20% 1.00 18% 30%