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The following table contains forecasts for shares of BSMWP Corporation and the market portfolio. The risk - free interest rate is 3 % . Expected

The following table contains forecasts for shares of BSMWP Corporation and the market
portfolio. The risk
-
free interest rate is
3
%
.
Expected
Return
Standard
Deviation
BSMWP Corporation
1
9
%
3
0
%
Market Portfolio
1
2
%
2
4
%
Covariance
(
BSMWP
,
Market
)
=
+
0
.
1
Risk
-
free interest rate
=
3
%
Based on the CAPM, are BSMWP shares fairly priced? Explain carefully and completely.
Show the calculations in excel used to support your answer

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