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Pietro Mansbridge has a portfolio comprised of the following three stocks: Expected Constant Number of Stock Share Price dividend next dividend growth shares year(0) rate

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Pietro Mansbridge has a portfolio comprised of the following three stocks: Expected Constant Number of Stock Share Price dividend next dividend growth shares year(0) rate Westport $28.21 2,000 $1.70 5% SignalChem $41.50 1,500 $9.25 8% RE Royalties $15.45 3,500 $ 1.80 496 Beta 0.85 1.25 1.70 The risk-free is currently 5% and the market risk premium is 7% Determine if each stock is overvalued, undervalued or properly valued according to the CAPM? Show your calculations

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