Suppose you observe the following situation:

Security Beta Expected Return

SWMS Co$.1\mathrm{.}5,12\%$

Insec Co$.0\mathrm{.}5,8\%$

The risk$-$free rate is currently $6$ percent. Is one of the two securities overvalued relative to the other?

The common stock of Flavorful Teas has an expected return of $13\mathrm{.}37$ percent. The return on the market is $12\mathrm{.}5$ percent and the risk$-$free rate of return is $3\mathrm{.}8$ percent. What is the beta of this stock?

$E(R)=$