Use the following data for questions 1 through 3 . Stock A has a systematic risk of A=0.8. The risk-free rate is RF=2% and the return on the market portfolio is RM=12%. 1. The required rate of return for A is a. 2% b. 12% c. 3% d. 10% e. 1.5% 2. If the actual rate of return is 14%, I. Stock A is under-priced and should be sold II. Stock A has a Jensen's Alpha of +4% III. Stock A is in equilibrium a. I only b. II only c. III only d. I and II only e. I, II, and III 3. Using the actual rate of return for A as 14%, its Treynor Ratio is a. 15.00 b. 9.33 c. 1.33 d. Greater than Treynor's Ratio for M e. Both a and d