Fredonia Co. stock has a beta of 85 and an actual return of 10.85 percent. The risk-free rate is 3.6 percent and the market return is 12.5 percent. (a) (2 points) What is the expected return on this stock? (b) (2 points) What is the slope of the security market line (SML)? (c) (2 points) Does Fredonia Co. stock plot above the SML? Explain. (d) (2 points) is this stock undervalued, overvalued, or correctly valued? Explain. 7 A- B IE III OP