1. If the market expected return for the next year is 6%, the annualized 3-month T-Bill rate is 1.5%. Yahoo Finance lists F as having a Beta of 2.40. Label your answers for questions 1-5. a. According to CAPM, what is the expected return on F for the next year? Show work for partial credit, b. If your analysis on F's fundamentals yields an expected return of 10%, then according to CAPM. is F over or under the security market line? Is Funderpriced or overpriced? What is Fs alpha? Show work for partial credit. c. If the market expected return has been adjusted upward by 1%, how much should is expected return be adjusted? Show work for partial a. According to CAPM, what is the expected return on F for the next year? Show work for partial credit, b. If your analysis on F's fundamentals yields an expected return of 10%, then according to CAPM. is F over or under the security market line? Is Funderpriced or overpriced? What is Fs alpha? Show work for partial credit. c. If the market expected return has been adjusted upward by 1%, how much should Fs expected return be adjusted? Show work for partial credit. d. What if the market expected return has been adjusted downward by 2%, then how much should Fs expected return be adjusted? Show work for partial credit Compare F with Johnson and Johnson (NJ), what would you think UNJ's adjustments should be in the situations of c) and d)? Why? (think about the kind of industry JNJ IS in vs. the kind of industry F is in)