Consider these three stock returns with the following annualised characteristics: Expected Return Standard deviation Beta 1.5 Stock A 15% Stock B 9% Stock C2% 25% 21% 10% 1.1 0.3 According to the Capital Asset Pricing Model (CAPM), which stock is a better buy, when the market's expected return is 8%, and risk-free rate is 4%? What is the alpha of each stock? Plot the Security Market Line (SML) and each stock's risk-return point on one graph. [10 marks]