Expected Returns and compare them with realized returns Given the betas you find in Table 3, calculate the one-month CAPM expected return for each stock [CAPM return = rf+ Betax(rm-r)]. Assume the one-month risk free rate r= 0.2% and expected one-month market return rm = 0.7%. Report the results in Table 4 below (note: r4 = r4 in Table 2) Compare the monthly (4-week) holding period return (i.e. r4) for each stock to its corresponding CAPM expected return. Choose in the "Under or Over-priced?" column whether the stock is over-priced or underpriced according to CAPM Table 4. CAPM returns Under or Over-priced? Calculated CAMP return r4 (from Table 2 Under-priced 0.75% 5.21% PL Choose an item WMT Choose an item HD Expected Returns and compare them with realized returns Given the betas you find in Table 3, calculate the one-month CAPM expected return for each stock [CAPM return = rf+ Betax(rm-r)]. Assume the one-month risk free rate r= 0.2% and expected one-month market return rm = 0.7%. Report the results in Table 4 below (note: r4 = r4 in Table 2) Compare the monthly (4-week) holding period return (i.e. r4) for each stock to its corresponding CAPM expected return. Choose in the "Under or Over-priced?" column whether the stock is over-priced or underpriced according to CAPM Table 4. CAPM returns Under or Over-priced? Calculated CAMP return r4 (from Table 2 Under-priced 0.75% 5.21% PL Choose an item WMT Choose an item HD