5. The following diagram shows the expected return and beta values of two securities P and Q. The line shows the return required by the CAPM: o Expected Return rt B = 1 Total risk What does the diagram indicate about the pricing of securities P and Q? Security P Security Q A underpriced overpriced B correctly priced underpriced correctly priced overpriced D overpriced underpriced 6. The following data relates to the ordinary shares of XYZ Bhd. Average market return 20% Risk-free rate of return 13% Beta factor of XYZ Bhd's equity 1.5 What is XYZ's cost of equity based on the capital asset pricing model? A 22.5% B 23.0% 23.5% D 24.0%