1. Yonnas, a Fund Manager, uses Capital Asset Pricing Model (CAPM) to manage his clients' portfolios. The following table shows the latest information from his company's research department. Forecasted Return Beta Standard Deviation Stock X 14% 36% Stock Y 17% 25% Market Index 14% 15% Risk-free Rate D5% a. Calculate the following for stock X and stock Y: Expected Return Alpha Sharpe ratio ii. iii. (1 mark) (1 mark) (1 mark) b. Explain and justify which stock (X or Y) should be the most suitable for an investor who prefers to: add the stock to a well-diversified stock portfolio. (2.5 marks) hold the stock in a single-stock portfolio. (2.5 marks) ii. c. Explain which measure(s) you will use to justify your answers for part b(i) and (ii) and why single-stock portfolio may be justified. (2 marks)