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please provide the graph and answer to all the questions. 26. Two stocks, one high risk (Happy) and one low risk (Lonely), have been evaluated
please provide the graph and answer to all the questions.
26. Two stocks, one high risk (Happy) and one low risk (Lonely), have been evaluated by your company. Your stock analysis team has predicted estimated retums and beta risk in the table below for the two stocks and the market. Using this information, and the CAPM model, draw the risk-return graph, with the security market line, and place the Est(R) and the CAPM required rate of return in their appropriate places on the graph and indicate to me on the graph why Happy and Lonely are either over-valued or under-valued. Provide your answer in the uploaded document. The risk-free rate is 3% Step by Step Solution
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