Keith holds a portfolio that is invested equally in three stocks (wp-WA-W-13). Each stock is described in the following table: Beta Expected Return Stoc DET 0.7 Standard Deviation 25% 38% ALL INO 10.0% 13.5% 1.6 An analyst has used market and firm specific information to make expected return estimates for each stock. The analyst's expected retum estimates may or may not equal the stocks' required returns The risk free rate [rarlis 6%, and the market risk premium (RPMis 4%. Use the following graph with the security market line (SML) te plot each stock's beta and expected return. Tooltip: Mouse over the points in the graph to see their coordinates. 0 Stock DET "0 44 Stock AIL RATE OF RETURN Stock INO 2 02 04 06 08 10 12 14 RISK A stock is in equilibriumidits required return its expected retum. 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, stockINO is stock AlL is in equilibrium, and stock DETS