Answer Part C please... thank you!

In 1997 the rate of return on short-term government securities (perceived to be risk-free) was about 5%. Suppose the expected rate of return required by the market for a portfolio with a beta of 1 is 12%. According to the CAPM (security market line): a. (3 points) What is the expected rate of return on the market portfolio? b. (3 points) What would be the expected rate of return on a stock with beta=0? c. (5 points) Suppose you consider buying a share of stock at $40. The stock is expected to pay $3 dividends next year and you expect it to sell then for $41. The stock risk has been evaluated by beta =0.5. Is the stock overpriced or underpriced