Use the following information. Month LCD stock S&P 500 (Market portfolio, rm) 1 5% -3% 2 9% 5% 3 7% 6% 4 10% 8% The risk-free rate is 1%. a) Find LCDs beta using the market model (Regression). b) Draw the security market line. Use the average of rm. c) If a stock that has a beta of 0.8 is currently expected to earn 5%, is the stock overvalued or undervalued? What is expected to happen to the stocks price and return?