C. An analyst expects a risk-free rate of return of 7.0%, a market return of 14% and an estimated return for stocks A and B indicated in the following table: Stock Beta Analyst's Estimated Return A 1.3 20% B 0.90 12% (i) If stocks A and B were fairly valued using the Capital Asset Pricing model (CAPM), show by means of a graph where each stock would plot on the security market line (SML). (ii) Show where stocks A and B actually plot on the same graph according to the returns estimated by the analyst and indicated in the table above. (iii) How could the analyst exploit any potential mispricing, opportunities