7. The following data are available to you as portfolio manager: Security A B C D E Market Index Government Security Estimated return (%) Beta 40 3.0 35 2.5 30 1.0 17.5 1.8 20.0 1.5 25 2.0 17 0 a) In terms of the security market line, which of the securities listed above are underpriced? b) Assuming that a portfolio is constructed using equal proportions of the five securities listed above, calculate the expected return and risk of such a portfolio. Activate Go to Setti