Please show all work, and correct answers

3- Assume the risk-free rate is 3%, are the above two stocks correctly priced? Why or why not?

4- Suppose risk-free rate of return=3%, market return=8%, and stock B's return=11%

a) Calculate sock B's beta

b) If stock B's beta were 2, what would be its new rate of return?

3. Suppose you observe the following situation: Security Beta Expected Return Cooley. Inc. 1.4 10% Mole: Co. 1.0 8% Assume the risk-free rate is 3%, are the above two stocks correctly priced? Why or why not