The market portfolio $(M)$ provides a $15\%$ annual return with a $20\%$ standard deviation. The risk$-$free rate of return $(r_f)$ is $5\%$ per annum. Security $Q$ and $P$ provide $17\%$ and $11\%$ return per annum and their betas are $1\mathrm{.}2$ and $0\mathrm{.}8$ respectively. Based on this information $Mr$ Ali drew the following graph of Security Market Line $($SML$)$ to identify any mispricing of security $Q$ and $P$ in the market. Unfortunately, Jenny forgot to label her graph. Help her label the following graph.Your preliminary analysis of two stocks has yielded the information set forth below. The return for the market is $10$ percent and the risk$-$free rate is $5$ percent.

$\backslash$table$[[,$A$,$B$],[\backslash$table$[[$Beginning of the year$],[$earning per share $($$$)]],5,3],[$Company payout policy,$40\%,60\%$

i$)$ Among the points $A,B,C,D,E$ and $F$ on the graph $-$ Identify the points that are indicating the locations of security $Q$ and $P.$

ii$)$ Based on the information above, do you think security $Q$ and $P$ are mispriced in the market? Explain if these securities are overpriced or underpriced? If security $Q$ and $P$ are not mispriced, then explain why not.