3.[10 points] Consider a market with three assets (one bond, two stocks) that fulfills the assumptions of CAPM. The risky returns R, and R2 are correlated with P12 = 1/3 and the following data is known: shares price o R1 200 50 8% 14% R2 150 200 1202 (a) (3pts) Find M12 and 2 such that the market portfolio fulfills um = 14% and om = 16.5%. (b) (3pts) What is the 3 of each stock? (c) (2pts) What is the risk-free rate r of the market? (d) (2pts) Is (n.) = (22.63%, 17.96%) or (17.96%, 22.63%) on the capital market line? 3.[10 points] Consider a market with three assets (one bond, two stocks) that fulfills the assumptions of CAPM. The risky returns R, and R2 are correlated with P12 = 1/3 and the following data is known: shares price o R1 200 50 8% 14% R2 150 200 1202 (a) (3pts) Find M12 and 2 such that the market portfolio fulfills um = 14% and om = 16.5%. (b) (3pts) What is the 3 of each stock? (c) (2pts) What is the risk-free rate r of the market? (d) (2pts) Is (n.) = (22.63%, 17.96%) or (17.96%, 22.63%) on the capital market line