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Jane has a portfolio comprised of the following three stocks: Number Expected Constant Share dividend dividend Stock of Beta Price next growth shares year(D1) rate

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Jane has a portfolio comprised of the following three stocks: Number Expected Constant Share dividend dividend Stock of Beta Price next growth shares year(D1) rate West IN Wing $25.21 2,000 $1.50 5% 0.85 Airlines Ltd Trans Ocean $44.50 1,500 $2.75 8% 1.25 Shipping Ltd On Time Trucking $15.25 3,500 $1.80 4% 1.7 Ltd The risk-free is currently 5% and the market risk premium is 7%. Question 19 (4 points) What is the beta of Jane's portfolio? (4 Marks) I Question 20 (9 points) Determine if each stock is overvalued, undervalued or properly valued according to the CAPM? Show your calculations. (9 Marks)

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