Exercice 3 : XDTR Inc. has a covariance of its return with that of the Toronto Stock Exchange (TSX 300) equal to 0.010. The expected rate of return on the TSX 300 is 20% and the standard deviation around that rate is 8%. The rate of return on Canadian federal government treasury bills is 11%. A forecast study on the price of XDTR inc. puts it at $ 60 in two years. It is assumed that the conditions and performance of the economy will remain unchanged during these two years, as will the rates of return on various assets, including that on treasury bills. A) Calculate the rate of return and the risk of a portfolio composed of 75% of the market portfolio and the remainder in Federal Treasuries. B) Determine the rate of return required by the market for XDTR inc. C) Find out how XDTR Inc.'s stock market behaves today. which is listed at $ 42.60 (in other words, is it overvalued or undervalued?). D) Find out what rate of return the current price of $ 42.60 per share of XDTR.inc is