pusiti UI KISK Lola NISK Risk Risk S&P 500 International Security 1: Ticker = International Security 2: Ticker = Which of the three securities is the riskiest based on total risk? How does your answer change if you consider only systematic risk? How does your answer change if you consider only firm-specific risk? 6. The Security Market Line: Using the risk-free rate and the mean returns and Betas of the international securities and the market (S&P), create an expected return - beta graph. Be sure to label all of the securities on the graph (including the risk-free security). Draw the Security Market Line (SML) for this set of securities. Attach the graph and related calculations as Exhibit 5. Are the international funds priced correctly according to CAPM? If not, what would be your buy/sell recommendations for these international funds? 5 pusiti UI KISK Lola NISK Risk Risk S&P 500 International Security 1: Ticker = International Security 2: Ticker = Which of the three securities is the riskiest based on total risk? How does your answer change if you consider only systematic risk? How does your answer change if you consider only firm-specific risk? 6. The Security Market Line: Using the risk-free rate and the mean returns and Betas of the international securities and the market (S&P), create an expected return - beta graph. Be sure to label all of the securities on the graph (including the risk-free security). Draw the Security Market Line (SML) for this set of securities. Attach the graph and related calculations as Exhibit 5. Are the international funds priced correctly according to CAPM? If not, what would be your buy/sell recommendations for these international funds? 5