CAPM 30 MMIN 5&P 500 CAT AMZN GOOGL Rf CAI 0.02% Average St. Dev. Beta 1 30% 2.60% 1 55% 6.25% 114 1.21% 7.83% 1.78 1.90% 5.8796 0.85 5. Based on the graph and table above, which Stock appears to have been under-priced and why? A. AMZN, because it plots below CAPM B. AMZN, because it has the highest risk C. CAT, because it plots below CAPM line D. CAT, because it has less return then the market E. GOOG, because it plots above the CAPM line F. GOOG, because it has less risk than the market 6. Write out CAPM equation based on the data above: A. R = 0.02% +2.6% (a) B. R = 0.02% + 1.3%) C. R=0.02% + Beta (1.00) D. R = 0.02% + Beta (1.30%-0.02%) E. R = 0.02% - Beta (2.6%-0.02%)