1. Stock (1) has an Expected return of 7% and volatility of 13%. Stock (2) has an expected return of 10% and a volatility of 16%. Correlation between stock (1) and stock (2) is 28%. Risk free rate is 3% a. Stock (1) has a correlation of 53% with the market the volatility of the market is 9% what is stock (1)'s beta? b. Stock (2) has a correlation of 88% with the market. The volatility of the market is 9% what is A's beta? What is the beta of a portfolio that invest 30% in stock (1) and 50% in stock (2) and 20% in the free risk account? d. Stock (2) has an alpha of 2% what is the market expected return c