c) In class, we discussed the capital asset pricing model (CAPM) and the security market line (SML). Explain these concepts to a group of potential investors at the Science Department using the appropriate diagram? If a security's expected return versus risk is plotted above or below the SML what does this imply? [4 marks] 1) The year 2020 has been a challenging year for most economies around the world. A financial analyst made the following observations. i. The board of directors of some manufacturing and services companies decided to pay stock dividends instead of cash dividends. ii. On the other hand, the board of directors of majority of companies within the ICT industry decided to pay special cash dividends. 111. It was also observed that management of some companies had decided to repurchase shares while others were engaging in stock splits. What could be the reason for these decisions and choice of dividend payments by the boards of these companies and what do you think will be the effect of such decisions on the outstanding number of shares and the share prices of these companies? [6 marks]