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Keith holds a portfolio that is invested equally in three stocks ( W _ { D } = W _ { A } = W

Keith holds a portfolio that is invested equally in three stocks (W_{D}= W_{A}= W_{1}=1/3) Each stock is described in the following table: Stock Beta Standard Deviation Expected Return DET0.725%8.0%38%10.0% INO 1.634%13.5% An analyst has used market- and firm-specific information to make expected return estimates for each stock. The analyst's expected return estimates may or may not equal the stocksrequired returns. The riskfree rate [is 6%, and the market risk premium [R*P_{M}] is 4%Use the following graph with the security market line (SML) to plot each stock's beta and expected return. (Note : Click on the points on the graph to see their coordinates .)2016 Stock DET 12Stock RATE OF RETURN ( Percent ) Stock INO 202101214162.0 RISK ()

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