Q1. Consider a portfolio consisting of the following three stocks. The standard deviation of the market portfolio is 10%. The expected return of the market portfolio is 8%. The risk-free asset is 3%. a. What is the beta and expected return of each stock? b. What is the expected return of the portfolio? c. What is the beta of the portfolio? 2. The actual return of the asset is 10% but based on its beta CAPM estimates its required return as 8% Is the asset overpriced or underpriced? Explain your answer. You may simply draw the graph that explains your