Show all work

Use the information below to answer parts a and b:

A Expected return 10% Beta 0.8

B Expected return 18% Beta 1.2

C Expected return 16% Beta 1.5

Furthermore, the risk-free rate is 3% and expected return of the market portfolio is 13%.

a. Are securities A, B, and C overvalued, fairly valued, or undervalued?

b. Find the beta of a portfolio that invests equally into these three securities.