Monica Dubois, an ABC investment advisor, has a new client, Mr.Jack Klein. Mr. Klein is a conservative investor who is interestedin a required rate of return of 10% on his stock investments whileassuming lower market risk. You are asked to help Monica make asuitable portfolio recommendation backed by risk-returncalculations. The 3 possible stock choices for Mr. Klein and theirrespective betas are as follows: Stock Expected Return Beta ABC 10%0.75 XYZ 11% 1.0 WHY 12% 1.25 Part I Determine the expected returnsand beta for a portfolio consisting of one third of Mr. Klein'sfunds in each stock. Part II Assume the following: Each ABC stockpays current dividends of $1.50 annually with 6% expected annualincreases. The current market stock price for ABC is $30 per share.Each XYZ stock pays current dividends of $1.75 annually with 6%expected annual increases. The current market stock price for XYZis $27 per share. Each WHY stock pays current dividends of $2.25annually with 7% expected annual increases. Current market stockprice for WHY is $35 per share. Complete the following for thisassignment: Using the constant dividend growth model, determinewhether ABC and WHY are over- or undervalued. For what types ofcompanies is the constant growth model an appropriate analysistool? What are the limitations of the constant growth model?