a) 3. On the following two sheets are regressions of the excess returns over the risk-free rate for Proctor and Gamble and Boston Scientific vis--vis the excess returns on the S&P 500 index. The S&P 500 index is our proxy for the market basket. Does Proctor and Gamble stock add to or reduce the overall riskiness of the market portfolio? Explain why in context of the parameters of the CAPM. b) Does Proctor and Gamble stock appear to be overvalued or undervalued or neither? Explain in terms of the parameters of the CAPM. Use the estimated parameters to compute the return to equity demanded by Proctor and Gamble shareholders according to CAPM. Show calculations. Assume the risk- free rate was 2% and the return on the market portfolio is 5%. Use raw beta in your answer. Answer questions a) through c) for Boston Scientific. a) 3. On the following two sheets are regressions of the excess returns over the risk-free rate for Proctor and Gamble and Boston Scientific vis--vis the excess returns on the S&P 500 index. The S&P 500 index is our proxy for the market basket. Does Proctor and Gamble stock add to or reduce the overall riskiness of the market portfolio? Explain why in context of the parameters of the CAPM. b) Does Proctor and Gamble stock appear to be overvalued or undervalued or neither? Explain in terms of the parameters of the CAPM. Use the estimated parameters to compute the return to equity demanded by Proctor and Gamble shareholders according to CAPM. Show calculations. Assume the risk- free rate was 2% and the return on the market portfolio is 5%. Use raw beta in your answer. Answer questions a) through c) for Boston Scientific