Question: Please show work for each part completed (if applicable) Thanks! What information is needed? 7..Use the CAPM relationship E(ri)=rf+i[E(rM)rf] to fill in the entries that

 Please show work for each part completed (if applicable) Thanks! What Please show work for each part completed (if applicable) Thanks! What information is needed?

7..Use the CAPM relationship E(ri)=rf+i[E(rM)rf] to fill in the entries that are missing in the table below. 8.You estimate that the risk-free rate of return is 7.2% and the expected return on the market portfolio is 16.3%. a. Use the CAPM to calculate the expected returns on Stocks 1 through 4 based on the information in the table below. b. Draw a graph of the SML. c. Show the positions of each of the assets relative to the SML. d. Indicate whether each asset is underpriced, overpriced, or correctly priced and calculate by how much

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