1. Samuels friend, Uma Thorman, has invested in the TA-RAN-TI-NO stocks. Uma has shared her returns with her friend on the table below. Samuel also knows that the market rate is 12% and the risk-free rate is 6%.

Security	Beta	Return
QUEN	1.8	?
TIN	0.7	?
TA	1.4	14.30%
RAN	2.1	18.90%
TI	0.3	8.40%
NO	1.2	12.70%

1. Are the TA-RAN stocks correctly priced for a risk-free rate of 6%? Calculate reward-to-risk ratio for each stock to answer this question.
2. Use the Capital Asset Pricing Model (CAPM) to calculate return for stocks QUEN and TIN.

What can you conclude about the relationship between beta and expected return? (1-2 sentences).