Suppose firms X, Y and Z have the expected returns and betas shown below: Company Expected Return Beta Firm X 9.96% 0.37 Firm Y 1.11 14.07% 16.51% Firm z 1.41 The risk-free rate is currently 5.80% and the required return on the market is 14.60%. A) According to CAPM, what rate of return each year should investors require as compensation for investing in Firm X? (Round your answer to two decimal places) B) According to the SML, is Firm X currently undervalued, correctly priced, or overvalued? O(No answer given) Ocorrectly valued Oovervalued Oundervalued c) What would the risk-free rate have to be in order for Firm Y and Firm Z to be correctly priced relative to each other? [You may ignore Firm X for this question) The risk-free rate would have to be Round your answer to two decimal places)