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Question 2 (1+1+1=3 marks) We have the following information for the following companies on the basis of five years of monthly data: Company 0 Pim Solar 12.1% 0.72 Falcon 14.6% 0.33 Brighton 7.6% 0.55 10.2% 0.60 Pura Market Index 6.5% 1.00 Required: (a) (6) Compute the beta coefficient for each stock. Assuming a risk-free rate of 4 percent and an expected return for the market portfolio of 11 percent, compute the expected (required) return for each stock and plot them on the Security Market Line (SML). Plot the following estimates of an analyst's forecast returns during the next year on the SML and indicate which of these stocks are undervalued or overvalued. (c) Solar Falcon Brighton Pura 10% 19% 6% 22%