Your opinion is that security A has an expected rate of return of $0\mathrm{.}145.$ It has a beta of $1\mathrm{.}5.$ The risk$-$free rate is $0\mathrm{.}04,$ and the market expected rate of return is $0\mathrm{.}11.$ According to CAPM, is this security fairly priced? Why? The risk$-$free rate is $4\%.$ The expected market rate of return is $12\%.$ If you observe that stock X with a beta of $1\mathrm{.}0$ offers a rate of return of $10\%,$ what is your trading strategy? $($Continuing with Part b$)$ Suppose you consider buying a share of stock at $$50.$ The stock is expected to pay $$3$ dividends next year and you expect it to sell then for $$51.$ The stock risk has been evaluated at $\backslash$beta $=0\mathrm{.}5.$ Is the stock overpriced, underpriced, or fairly priced?