Question: solve Show your work in detail to get full points You own a portfolio consisting of the following stocks. Stock % of Portfolio Beta 30X

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Show your work in detail to get full points You own a portfolio consisting of the following stocks. Stock % of Portfolio Beta 30X 1.30 Return Expected 8% 1 2 40 0.75 7% 7% 3 30 1.20 9% The risk-free rate is 3% and the expected return on the market portfolio is 8%. A. Which stocks are underpriced and which are overpriced? (1.2 point) B. Calculate the expected return on your portfolio. Then, calculate the portfolio's required rate of return based on CAPM. Why are these 2 numbers different? (1.2 point)

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