Q$\mathrm{.}2)$ The following data is available to you as portfolio manager:

$\backslash$table$[[$Security$,$Estimated return $(\%),$Beta,Standard Deviation $(\%)],[$A$,30,2,50],[$B$,25,1\mathrm{.}5,40],[$C$,20,1,30],[$D$,11\mathrm{.}5,0\mathrm{.}8,25],[$E$,10,0\mathrm{.}5,20],[$Market Index,$15,1,18],[$Govt$.$ Security,$7,0,0]]$

a$)$ In terms of the security market line, which of the securities listed above are underpriced?

b$)$ Assuming that a portfolio is constructed using equal proportions of the five securities listed above, calculate the expected return and risk of such a portfolio.