Joshua 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 return for four stocks: Dutch Lady, Nestle, Maxis and IOI. Joshua's supervisor 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: (RM) Stocks Beta Portfolio Expected Return (%) Dutch Lady 1.5 250.000 Nestle 1.2 100.000 20 Maxis 0.5 100.000 ROL -os 50.000 WDL = 250,000/700,000 - Required: Calculate the required rate of return for each stock by using the CAPM. [CLO1:PLO1:C1](3 marks) by Plot each of the stock on the Security Market Line (SML). [CLOI:PLOI:C2(5 marks) Calculate the alpha for each stock. [CLOI:PLOI:C1](3 marks) a) Explain why the alpha can be negative or positive? [CLO1:PLO1:C2](2 marks) Calculate the beta portfolio and expected return on portfolio Plot in the graph as well. Calculate the risk premium by using the formula and by graph. 3) Comment your outcome from (e) and which stock(s) to invest. [CLOI:PLOI:C3]