QUESTION 1 a) The information below pertains to three stocks, the market and risk-free security. Standard Deviation 28 42 Stock Antax Babbles CWai Dbest Market T-Bills Return (in %) 9 17 7 12 8 2.5 Beta 1.1 1.5 0.8 1.3 1.0 18 23 20 1) Based on CAPM pricing equation, determine which stock(s) should be chosen for strategic investment decision. Justify your answer. ii) Based on Capital Market Line (CML) pricing equation, determine which stock(s) should be chosen for strategic investment decision. Justify your answer. ii) Based on your answer in (), plot the SML graph together with the respective stocks returns. (15 marks) b) Because of the COVID-19 pandemic and the movement control orders (MCOs), you expect essential goods and services stocks, to perform well over the next three to six months. As an active portfolio manager, describe the various methods available to take advantage of this forecast