QUESTION 1 Regain Berhad has RM15,000 and wanted to invest RM8,000 in Stock AA and the remaining in Stock AAA. The risk-free rate is 5% and the market premium is 2%. If the beta for Stock AA is 0.8 and Stock AAA is 1.2. Using CAPM calculate expected return for: Stock AA 11. Stock AAA 111. Portfolio (3 marks) (3 marks) (5 marks) Based on the information of Stock AA where the beta is 0.8 and risk-free rate is 5%, draw the security market lines (SML) to show the movement SML when there is 2% inflation premium. (5 marks) [Total: 16 marks]