Assume that the CAPM is a good description of stock price returns. The market expected return is 8% with 12% volatility and the risk-free rate is 3%. New news arrives that does not change any of these numbers, but it does change the expected returns of the following stocks Volatility Beta Expected Return 5% 13% 7% 10% Stock laggart Transcontinental Rearden Metal Wyatt Oil Nielson Motors Which of the following stocks represent buying opportunities? 1. Taggart Transcontinental 2. Rearden Metal 3. Wyatt Oil 4. Nielson Motors O 2 & 4 only O 1 only O 2 & 3 only O 1& 2 only 8% 40% 0% 32% 0.8