Based on five years of monthly data, you derive the following information for the companies listed: ai (Intercept) 0.20 Company Intel Ford Anheuser Busch Merck S&P 500 0.10 0.19 12.00% 14.30 6.90 8.50 5.00 0.68 0.28 0.50 0.77 1.00 0.05 0.00 a. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places. Intel: Ford: Anheuser Busch: Merck: b. Assuming a risk-free rate of 7 percent and an expected return for the market portfolio of 13 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: c. Choose the correct SML graph for the following estimated returns for the next year. Intel - 20 percent Ford - 14 percent Anheuser Busch - 18 percent Merck 8 percent The correct graph is -Select- Security market Line E(RI) SML 0.18 0.16 Em 0.14. 0.12 0.1 -0.08 Merck 0.067 0.04 -0.021 -0.2 0.2 0.4 1.4 1.6 1.8 Beta 0.6 0.8 12 Security market Line B. E(RI) *Ford 0.18 * Merck SML 0.16 0.141 m D.12 -0.1 -0.087 -0.06 0.04 -0.027 0.2 0.2 0.4 1.6 1.8 Beta 0.6 0.8 Security market Line C E(RI) AB 0.10 SME 0.16 0.14 R 0.12 0.11 0.08 -0.06 0.04 -0.02 -0.2 0.2 0.4 0.6 0.8 1.2 2.4 1.6 1.8 Beta D. Security market Line E(RI) Inte 0.101 SML 0.16 0.14 Rm 0.12 0.17 0.081 Merck -0.06 0.04 -0.021 112 1.4 1.6 1.8 Beta -0.2 0.2 0.4 0.8 Which stocks are undervalued or overvalued? Company Intel Ford Anheuser Busch Merck Evaluation -Select- Select -Select V -Select