an investment market, understanding the concept of undervalued and overvalued stocks is very important. Hence, a prudent investor must have good knowledge about Beta, Market Rate of Return and Risk...

an investment market, understanding the concept of undervalued and overvalued stocks is very important. Hence, a prudent investor must have good knowledge about Beta, Market Rate of Return and Risk Free Rate of Return.
Required:
a) Being an investor, critically analyse the conditions of undervalued and overvalued stocks

b) Give a graphical example to present the positioning of:
 Systematic risk
 Risk free rate of return
 Market rate of return, and
 Risk premium.