If you expect a 12 percent return on this portfolio for the next year, based on the prices you observe in the market, would you be willing to buy it? Why or why not? Demonstrate your answer on a graph of the SML

An investor has decided to form a portfolio by purchasing 100 shares of each of the following stocks: Stock Beta Price per share 0.90 $10 $40 $60 1.10 1.30 The risk-free rate of return is 7 percent and the required return on the market portfolio is 10 percent