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e. Plot the portfolio betas against the portfolio expected returns for Stock I on a graph, and link all the points together with a line.

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e. Plot the portfolio betas against the portfolio expected returns for Stock I on a graph, and link all the points together with a line. Then plot the portfolio betas against the portfolio expected returns for Stock J on the same graph, and link all these points together with another line. (This can be done easily with the charting function in Microsoft Excel.) (2 marks) f. Use the graph in part (e) above, together with your answers to parts (b) and (cl) above to explain why Stock J is an inferior investment to Stock I. (2 marks) 9. Can a situation in which one stock is inferior to another stock persist in a well- organized, active market? Why or why not? (2 marks)

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