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2) In Energy land there are only two risky stocks, energy A and energy B, whose details are listed below Number of shares Price Expected

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2) In Energy land there are only two risky stocks, energy A and energy B, whose details are listed below Number of shares Price Expected Standard deviation Energy A Energy B outstandir 100 150 er share rate of return $1.50 $2.00 15% 12% of return 1 5% 9% Furthermore, the correlation coefficient between the returns of stock A and B is 1/3. There is also a risk-free asset, and Energyland satisfies the CAPM exactly a) What is the expected rate of return of the market portfolio? b) What is the standard deviation of the market portfolio? c) What is the beta of Energy A? d) What is the risk-free rate in Energyland

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