FINC 3315 SECURITY INVESTMENT & PORTFOLIO MANAGEMENT ASSIGNMENTI SECURITY MARKET LINE (SML) Joshus has got the offer to work with CIMB in Investment Department after his finished his studies in Bachelor in Finance. His first assignment is to investigate the expected rates of teturn for four stocks: Dutch Lady. Nestle, Masis and lot. Joshua's superior suggests that he make his estimates using the Capital Asset Pricing Model (CAPM), assuming the risk free rate is 3 percent and the market risk premium is 8 percent. The information for the stocks as follows: Stocks Bet Portfolio Expected Return . (RM) Dutch Lady IS 250,000 24 Required: Nestle 12 300,000 Maxis 0.5 100,000 12 a) Calculate the 101 -0.5 50.000 6 required rate of return for each stock by using the CAPM b) Plot the SML in the graph c) Calculate the alpha and show in the graph d) Calculate the slope and show in the graph c) Calculate the risk premium by using the female proof the equivalent wer as in the graph Calculate the expected retum portfolio and the beta poetfoto Comment the outcome from the above cs