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Assume that the CAPM is a good description of stock price returns. The market expected return is 7 % withm 1 0 % volatility and

Assume that the CAPM is a good description of stock price returns. The market expected return is 7% withm10% 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 return of the following stocks:
a. Calculate the alpha for each stock in the table.
b. At current market prices, which stocks represent buying opportunities? On which stocks should you put a sell order in?
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