2 Ms. Kay Brillant, an investment manager, is using the CAPM to recommend stocks to her clients. She has obtained the following data from a market research firm: Forecasted Standard Name Return Deviation Beta Theta 12% 36% 0.6 Sigma 14% 25% 1.3 Market Index 12% 15% 1.0 Risk Free Rate 3% A B i) Add this stock to a well-diversified equity portfolio. ii) Hold this stock as a single stock portfolio. Calculate expected return and alpha for each stock. 4 Identify and explain which stock would be more appropriate for an investor who wants to: 4 4