There are three stocks: ABC Jewelry, CTech, and JC, as well as information on the Market index and the reference risk-free asset. Your personal financial analyst, who assists you in your portfolio management, has prepared her forecast for you for the three individual stocks. The variable Corr(i,m) is the correlation coefficient between the asset "i" and the market "m." Beta(i) is the beta in the CAPM for asset "i." Fill in the missing portions in the table, and answer the related questions below. Note, the consensus estimate you are calculating is the general view held by professionals, and the missing consensus estimate should be based on the CAPM.

	Security	Analyst forecast	Consensus estimate	S.D.	Corr(i,m)	Beta(i)
	JC	0.10		0.02		1.2
	ABC Jewelry	0.15		0.08	1
	CTech	0.15			0.5	0.5
	Market	0.12	0.12	0.04
	Riskfree	0.05	0.05	0

Question (a): You should be able to fill in the blue cells above w/no calculations. What is your logic for each value? Corr(M,M) Corr(M,Rf) Beta(M) Beta(Rf) Question (b): Are the stocks overvalued/undervalued/correctly valued? How do you know? ABC Jewelry,

CTech,

JC Question ( c): Describe an investment strategy that can generate a profit for you. Assume you own the three stocks. You cannot borrow money, but you can sell one of the stocks to buy another. Describe your investment strategy here:

Please Show all your calculations! Thanks!