2. A stock has a Beta of 0.85 and a standard deviation of 19%. The risk-free rate is 3.8%, the expected return on the market is 9.6%. What is the: a. Expected return of the stock? b. Sharpe ratio of the stock? 3. You examine the following metrics on a collection of stocks a. If you're a mean-variance optimizer, which stock is the best/worst stock to own if the riskfree rate is 2.8% ? Justify with one measure. b. If you're concerned about large negative down-moves, which stock is the safest/riskiest stock to own? Justify with 2 measures. c. Assume Stock's C and D have a correlation of 0.30 . If you invest 30% in C and 70% in D, what is the standard deviation of the two-stock portfolio? 2. A stock has a Beta of 0.85 and a standard deviation of 19%. The risk-free rate is 3.8%, the expected return on the market is 9.6%. What is the: a. Expected return of the stock? b. Sharpe ratio of the stock? 3. You examine the following metrics on a collection of stocks a. If you're a mean-variance optimizer, which stock is the best/worst stock to own if the riskfree rate is 2.8% ? Justify with one measure. b. If you're concerned about large negative down-moves, which stock is the safest/riskiest stock to own? Justify with 2 measures. c. Assume Stock's C and D have a correlation of 0.30 . If you invest 30% in C and 70% in D, what is the standard deviation of the two-stock portfolio