B. The risk-free rate is 5 percent and the expected return on the market portfolio is 10 percent. i. Sketch the security market line (SML). (2 marks) ii. Assume stock X has an expected return of 15% and a beta of 1.2 and stock Y has an expected return of 7% and a beta of 0.8. Explain whether stock X and Y is undervalued or overvalued; Provide advice as to which stock is best to invest in. (4marks) C. An investor's portfolio consists of the following stocks: The current risk-free rate of return is 8.7% and the expected return on the market portfolio is 18%. Compute the: i. expected return on the portfolio ii. portfolio Beta (3marks) iii. required rate of return for JNA and JMB stocks (3 marks) (4marks) (Total 20 marks)