The following table contains information based on analysts' forecasts for three stocks. Assume at-bill rate of 4% and S&P500 returns of 12%.

Stock	Today's Price	Expected Price in 1 Year	Expected Dividen in 1 Year	Beta
A	20.00	21.00	1.00	1.0
B	30.00	33.00	1.50	0.75
C	14.22	16.00	0.50	1.5

a) Compute the expected return and the required return on each stock and determine whether each stock is undervalued, overvalued, or fairly valued.

b) Outline an appropriate trading strategy using the available information and the results generated. Include graphical analysis.