Question: I need a detail answered and explaination. Tqvm, QUESTION 4 a) Based on the following information, determine whether the securities are undervalued, overvalued or fairly

I need a detail answered and explaination. Tqvm, QUESTION 4 a)

I need a detail answered and explaination. Tqvm,

QUESTION 4 a) Based on the following information, determine whether the securities are undervalued, overvalued or fairly valued by employing the Capital Asset Pricing Model (CAPM). Expected Return (%) 14.5 8.2 11.0 4.0 11.0 4.0 Security 1 Security 2 Security 3 Security 4 Market portfolio Risk-free rate Correlation with Market Portfolio 0.8 0.7 0.5 0.1 1.0 Standard Deviation (%) 19 8 14 8 11 (16 marks)

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