Keith holds a portfolio that is invested equally in three stocks (wp-WA-W-1/3). Each stock is described in the following table: Stock Beta Standard Deviation Expected Return DET 0.7 25% 8.0% All 1.0 30% 10,0% IND 1.6 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 stocks required returns. A The risk free rate (rar) is 6%, and the market risk premium [RPu] is 4%. Use the following graph with the security market ine (SML) to plot each stock's beta and expected return. (Note: Click on the points on the graph to see their coordinates.) The risk-free rate [n] is 6%, and the market risk premium (RPM) is 4%. Use the following graph with the security market ine (SM) to plot each stock's beta and expected return. (Note: Click on the points on the graph to see their coordinates) 16 RATE OF RETURN(Percent 10 0 Stock DET 4 Stock AL Stock (NO equals A stock is in equilibrium if its required return its expected return. In general, assume that markets and stocks are in equilibrium (or fairly valued), but sometimes investors have different opinions about a stock's prospects and may think that a stock is out of equilibrium (either undervalued or overvalued). Based on the analyst's expected return estimates, stock INO is in equilibriumstock All in in equilibrium, and stock DET is in equilibrium Grade It Now Save & Continue Continue without saving