Assume that the CAPM is a good description of stock price returns. The market expected return is

7%

with

12%

volatility and the risk-free rate is

4%.

New news arrives that does not change any of these numbers but it does change the expected return of the following stocks:

LOADING...

.

a. At current market prices, which stocks represent buying opportunities?

b. On which stocks should you put a sell order in?

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Part 1

Complete the table with the alphas below:(Round to one decimal place.)

	Expected Return		Volatility	Beta	Alpha
Green Leaf	14%		21%	1.46	enter your response here%
NatSam	12%		40%	2.03	enter your response here%
HanBel	8%		30%	0.88	enter your response here%
Rebecca Automobile	7%		31%	1.31	enter your response here%

	Expected Return	Volatility	Beta
Green Leaf	14%	21%	1.46
NatSam	12%	40%	2.03
HanBel	8%	30%	0.88
Rebecca Automobile	7%	31%	1.31