Question: 1) The historical returns data for the past three years for Company A's stock is -6.0%, 15%, 15%, that of the market portfolio is 10%,

1) The historical returns data for the past three years for Company A's stock is -6.0%, 15%, 15%, that of the market portfolio is 10%, 10% and 16% and the risk-free rate of return is 4%. According to the security market line (SML), the Stock A was: a)Under priced b)Over priced c) 2% under priced d)Correctly priced e) 2% over priced f) Need more information to answer this g)Identical in its risk return characteristics to the market portfolio 2)The market value of XYZ Corporation's common stock is 40 million and the market value of the risk-free debt is 60 million. The beta of the company's common stock is 0.6, and the expected market risk premium is 0.074. If the Treasury bill rate is 6%, what is the firm's cost of capital? (Assume no taxes.) please explain not just answer!!!thanks

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