7. You will invest in four stocks with the following individual Betas and Expected returns: a. Estimate the Portfolio Beta. (Remember you must get the weights first). Is the Portfolio Beta better than the individual stock betas? p=i=1nwii b. Assume that the Risk-Free return is 4% and the Expected Market Return is 9%. Estimate the CAPM returns for each stock. Find out if the expected return of each asset is overpriced, underpriced, or fair value. CAPM Formula E(Ri)RfE(RM)=Rf+[E(RM)Rf]i=4%=9%