Question 4 2 pts (Ref. Unit 9 Exercise 3) You are interested in buying a stock. The beta of the stock is 0.9. The expected return on the S&P 500 Index is 10%, and the U.S. T-bill rate is 2%. A. (1 point) What is the expected return on the stock according to the CAPM? Show your calculation steps clearly and briefly. B. (1 point) Suppose that the actual expected return on the stock is 8.5%. Is the stock plotted above, on, or below the security market line (SML)? Is the stock overpriced, underpriced, or fairly priced? Briefly explain. Edit View Insert Format Tools Table 12pt Paragraph