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Based on historical data, you have estimated the following probability distributions for the returns on two individual securities (SMALL and BIG) and the value-weighted market

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Based on historical data, you have estimated the following probability distributions for the returns on two individual securities (SMALL and BIG) and the value-weighted market portfolio: What is the beta of Small in the table above? What is the beta of Big? If the CAPM is true, is Small undervalued or is it overvalued? What about Big? You may to assume that the risk-free rate is 1%. a. Small=2.99, Small is undervalued b. Small=2.61, Small is overvalued c. Small=2.99, Small is overvalued d. Small=2.61, Small is undervalued

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