Dmitri holds a portfolio that is invested equally in three stocks. An analyst has used market-and firm-specifle information to make expected retum estimates for each stock. Each stock is described in the following table: The risk-free rate, R4, is 6 percent and the market return, Re is 10 percent. The line given on the following graph represents the security market line (SML), which is derived from the CAPM equation: R=Rc+Bj(RmR1). Use the following graph with the security market line to plot each stock's beta and expected retum. (Note: Click the points on the graph to see their coordinates.) Sometimes investors have different opinions about a stock's prospects and may think that a stock is either undervalued or overvalued. Determine the required rate of refurn for each stock, and then use the analyst's expected return estimates to determine whether he thinks each stock in Dmitri's portfolio is undervalued, overvalued, or fairly valued