Based on the graph and table above, which Stock appears to have been under-priced and why? AMZN, because it plots below CAPM AMZN, because it has the highest risk CAT, because it plots below CAPM line CAT, because it has less return then the market GOOG, because it plots above the CAPM line GOOG, because it has less risk than the market Write out CAPM equation based on the data above: R_i = 0.02% + 2.6% (sigma_i) R_i = 0.02% + 1.3% (sigma_i) R_i = 0.02% + Beta_i(1.00) R_i = 0.02% + Beta_i (1.30% -0.02%) R_i = 0.02% - Beta_i (2.6% -0.02%) What is the Beta of XLU (SPY is a proxy for S&P 500)? 0.197 0.265 0.357 1.814 Cannot tell