Suppose CAPM holds. The market risk premium (rm-r) is 15% and the risk-free rate is 8%. Consider two stocks with the following characteristics: Stock Beta 20 38 2 a. For each stock, tell me what its return should be in theory and whether it is under-, over-, or fairly-valued. b. Graph the Security Market Line. Label the axes and intercept. Draw where A and B lie relative to the SML on the graph