If the annual risk-free rate is 2% and the expected annual market return is 4%, answer the questions below: (a) The table below shows the market betas of the shares of IBM and Apple, respectively. Stock Beta IBM 0.80 Apple 1.30 The CAPM predicts that the equilibrium annual rate of return of Apple share should be __(1 mark) (b) If the share price of Apple today is $190 and the market expects that the price will rise to $195 one year later. Under the CAPM, the share of Apple is currently (C) According to (a) and (b), the reasonable share price of Apple today should be $ (Round to two decimal places.) (1 mark) (under-priced or over-priced). (1 mark)