1. Use the following information to answer the questions. Security Beta Standard DeviationExpected return 10% 090 20% 15% 25% 8.0% 4.0% 10.0% S&P 500 1.0 Risk-free security 0.0 Stock D Stock E Stock F 0.8 1) What is the market risk premium? (20points) 2) Figure out the beta for Stock D and the expected return for Stock E. (40points) 3) You form a portfolio by investing $4,000 in the market portfolio and $6,000 in the risk-free security. Figure out the expected return, the standard deviation, and the beta for your portfolio. (45points) 4) The complete portfolio of $1,000 is composed of the risk-free security and a risk portfolio, P, constructed with two risky securities, X and Y. The optimal weights of and Y in P are 40% and 60% respectively. Given the risk-free rate of 4%. X has expected return of 10%, and Y has an expected return of 12%. a) Figure out the expected return for the risky portfolio, P. (10points) b) To form a complete portfolio with an expected return of 7.6%, how much sho you invest in the risk-free security, securities X and Y, respectively? (3Spoints)