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a) Plat the Security Market Line (SML) (2 marks) b) Superimpose the CAPM's repuired ratum on the SML (2 marks) c) Indicate which investments will

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a) Plat the Security Market Line (SML) (2 marks) b) Superimpose the CAPM's repuired ratum on the SML (2 marks) c) Indicate which investments will plot on, above and below the SML? (2 marks) d) If an investment's experted retum (mean retum) does not plot on the SML, what does it show? Identify undervalued/overvalued investments from the graph (2 marks)

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