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please describe any excel formulas used 2 Botki De Marzo Corporate Finance de Time: 4:47 PM Assume that the CAPM is a good description of

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2 Botki De Marzo Corporate Finance de Time: 4:47 PM Assume that the CAPM is a good description of stock price returns. The marke d ets with 12% volaty and the risk-free rate is 2%. New news arrives that does not change any of these numbers des change the expected t o the following stocks: a. At current market prices, which stocks represent buying opportunities? b. On which stocks should you put a sell order in? Complete the table with the alphas below: (Round to one decimal place.) Alpha Beta 1.48 Green Leaf Natsam HanBel Rebecca Automobile Expected Return 13% 12% 8% 6% Volatility 19% 47% 27% 32% 1.53 0.74 1.26 1: Data Table "Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Expected Return Volatility Beta 13% 19% Green Leaf 1.48 12% 47% 1.53 NatSam 27% 8% HanBel 0.74 32% 1.26 Rebecca Automobile 6%

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