You hold three stocks in your portfolio. Using the information in the table below, answer the following questions.

	Weight	Beta	Expected Return
Stock A	30%	1.80	15%
Stock B	20%	1.20	11%
Stock C	50%	0.60	7%

Show your work.

a. What is the beta of your portfolio?

b. What is the required return of the portfolio using CAPM? Assume the market return is 11% and the risk-free rate is 2%

c. What is the expected return of the portfolio?

d. Given the information that you have calculated, is the portfolio undervalued or overvalued? Explain.