Please provide the detailed steps to arrive at the answer below. I am not understanding how to even get started with this question. What would the recommendation be?

Given the following information for the two stocks: StockExpected ReturnStandard DeviationInvestmentBetaA16%3%$30,0001.2B15%10%$20,0000.8 You construct a portfolio composing of stocks A and B according to the above information.Assume that the risk free rate is 6% and the market risk premium (MRP) is 9%. Use the CAPM analysis to numerically determine whether this 2stock portfolio is fairly priced?What is your investment recommendation on this portfolio? Why?

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