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At present, the riskless rate of return is 5 percent and the expected rate of return on the market portfolio is 10 percent. The returns

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At present, the riskless rate of return is 5 percent and the expected rate of return on the market portfolio is 10 percent. The returns for five stocks are listed below, together with their betas: Actual Beta Actual Return 0.15 0.20 0.08 0.10 0.09 Stock 1.5 1.3 0.8 0.7 1.1 On the basis of these data, which stocks are overvalued? Which stocks are undervalued

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