Problem 2: Firm AAA 's stock has a beta of 0.8 and a standard deviation of 20%. Suppose that the risk free rate is 3%, and the required return on the market is 11%. (a) What is the required return on Firm AAA's stock? (b) What is the reward/systematic risk ratio for the stock? (c) What is the required return on a portfolio consisting of 30% of Firm AAA's stock and the rest in a risk free asset? If firm AAA 's stock reports the actual return of 9%. Based on CAPM, is the stock overpriced or underpriced? (d)