3a) Assume that the risk-free interest rate is 1 per cent, while the market portfolio has an expected return of 6 per cent and volatility (standard deviation) of 15 per cent. Suppose you want to put together your portfolio so that you get an 11 percent return in such a way that you get the lowest possible volatility. What then becomes the standard deviation of the portfolio?

3b) Assume that the risk-free interest rate is 4 per cent, while the stock market's return is 8 per cent. According to CAPM, what is the return on a stock that has a beta equal to 0?

30 prosent 10 prosent O 12 prosent O 5 prosent 4 prosent 12 prosent O 8.8 prosent O 10 prosent