QUESTION I continued: b) Assume that the CAPM is the correct asset pricing model. The market expected retum is 6% with 15% volatility and the risk-free rate is 4%. News arrives and it changes only the expected retum of the following stocks: i ii. Estimate the normal retum and abnormal return for each stock. Specify which stock presents buying opportunities and which presents selling opportunities? No. Stock Expected Return after News Arrives Volatility Beta Trump Putin 9% 5% 2 29% 42% 42% 2.1 1.6 (5 marks) Estimate the normal return and abnormal return for each stock. Specify which stock presents buying opportunities and which presents selling opportunities