answer the question given

Question 1 Mr. Aoran is considering to include some stocks into his current portfolio. He has collected the following information from his financial advisor. The Malaysian Government Securities (MGS) is currently trading at 3 percent and the market risk premium is 7 percent. Stock A B D E Beta 0.68 1.42 1.23 1.31 0.94 Expected Return 8.2% 13.9% 11.8% 12.6% 9.7% Based on the information given, you were required to: (a) Calculate the required rate of return for each stock. (5 marks) (b) Calculate alpha and determine either the stock is undervalued or overvalued. Which stocks should Mr. Aoran include in his portfolio