Pick one stock, Use its beta to compute its "expected return" assuming CAPM, For CAPM, use the risk-free return (RA) of 4.59% and the market return (Ren) of 5.85%. The risk-free rate is the 3 -month T-Bill rate. The market return is based on the latest 5&P500 index value of 4,117.86 in Feb. 2022 and the value of 4.373 .94 a year ago, so market return =4,117.86/4,373.941=5.85%. Expected return = Risk free retum + beta * (market return + risk free return )=4.59%+beta(5.85%4.59%%) Given: risk free refurn =4.59%, market retum =45.85% It is uncommon that we have a negative market return, but it is what we have and we will use the figure to measure performance. Then, generate the stock's historical stock prices and compute its latest "actual return" (based on ad), close price). Actual return = ending adj. close price / beginning adj. close price - 1 Compare its "actual return" to the "expected return" to see if the stock is on, above, or below the Security Market Line (SML)