Based on five years of monthly data, you derive the following information for the companies listed:

Companya_i (Intercept)_ir_iMIntel0.2411.30%0.64 Ford0.0914.30 0.32 Anheuser Busch0.168.90 0.59 Merck0.0510.60 0.65 S&P 5000.004.00 1.00

1. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places.

Intel:

Ford:

Anheuser Busch:

Merck:

1. Assuming a risk-free rate of 9 percent and an expected return for the market portfolio of 14 percent, compute the expected (required) return for all the stocks. Do not round intermediate calculations. Round your answers to two decimal places.

Intel: %

Ford: %

Anheuser Busch: %

Merck: %

1. Choose the correct SML graph for the following estimated returns for the next year.
   • Intel 20 percent
   • Ford 16 percent
   • Anheuser Busch 17 percent
   • Merck 12 percent

which one is the correct graph?

Which stocks are undervalued and overvalued between: Intel, Ford, Anheuser Busch, and Merck?