7. The Capital Asset Pricing Model and the security market line Keith holds a portfolio that is invested equally in three stocks (wD WA wIE /3). Each stock is described in the following table Stock Beta Standard Deviation Expected Return DET 0.7 25% 8.0% 10.0% AIL 1.0 38% 34% INO 1.6 13.5% An analyst has used market and firm-specific information to make expected return estimates for each stock. The analysts expected return estimates may or may not equal the stocks' required returns. The risk-free rate [r s 6%, and the market risk premium CRP s 4%. Use the following graph with the security market line (SML) to plot each stock's beta and expected return