2. Suppose the market portfolio consists of weights wi = 0.30, and, W2 = 0.70 in two stocks. Assume that ER1)= 10% and E(R2)=20%, Var(R1=25%, Var(R2)=45%. Assume that the correlation between the two stock returns is 0.5. I (a) Compute the variance of the market portfolio (you might look at Properties 10 and 11 of "Review of Variances and Covariances" posted on Blackboard). (b) Find the beta of each stock with respect to the market portfolio. Also find the quantity wiB1+ W2B2