Ex 10. 6. Currently, the risk-free rate is 10 percent and the expected return on the market port- folio is 15 percent. Market analysts' return expectations for four stocks are listed here, together with each stock's expected beta. STOCK EXPECTED RETURN EXPECTED BETA 1. Stillman Zinc Corporation 2. Union Paint Company 3. National Automobile Company 4. Parker Electronics, Inc. 170 155 a. If the analysts' expectations are correct, which stocks (if any) are overvalued? Which (if any) are undervalued? Ex 11. 8. Salt Lake City Services, Inc., provides maintenance services for commercial buildings. Currently, the beta on its common stock is 1.08. The risk-free rate is now 10 percent, and the expected return on the market portfolio is 15 percent. It is January 1, and the com- pany is expected to pay a $2 per share dividend at the end of the year, and the dividend is expected to grow at a compound annual rate of Il percent for many years to come. Based on the CAPM and other assumptions you might make, what dollar value would you place on one share of this common stock? Ex 12. 9. The following common stocks are available for investment: COMMON STOCK (TICKER SES Nanyang Business Systems (NBS) Yunnan Garden Supply, Inc. (YUWHO Bird Nest Soups Company SLURP Wache.com! (WACHO) Park City Cola Company (BURP) Oldies Records, Lid. (SHABOOM 0.60 090 a. If you invest 20 percent of your funds in cach of the first four securities, and 10 per- cent in each of the last two, what is the beta of your portfolio? b. If the risk-free rate is 8 percent and the expected return on the market portfolio is 14 percent, what will be the portfolio's expected return