5. Imagine there are two risky assets and the risk-free asset of the US bond in the table below. Suppose all the assumptions of the Capital Asset Pricing Model (CAPM) are satisfied. Then answer the following questions. Security Shares Outstanding 10,000 20,000 30,000 Relative Shares In market 1/6 1/3 Price $4.50 Rate of returns 12% Jazz Inc. Classical, Inc. US bonds Total Standard Deviation 6% 2% [8] 8% $6.75 $2.40 1/2 6% 60,000 1 [M19]: When the covariance between the market portfolio and the stock of classical Inc. is 0.002, what is the approximate beta value of the stock classic Inc.? a. 0.057 b. 0.085 c. 1.000 d. 1.235 e. 1.632 5. Imagine there are two risky assets and the risk-free asset of the US bond in the table below. Suppose all the assumptions of the Capital Asset Pricing Model (CAPM) are satisfied. Then answer the following questions. Security Shares Outstanding 10,000 20,000 30,000 Relative Shares In market 1/6 1/3 Price $4.50 Rate of returns 12% Jazz Inc. Classical, Inc. US bonds Total Standard Deviation 6% 2% [8] 8% $6.75 $2.40 1/2 6% 60,000 1 [M19]: When the covariance between the market portfolio and the stock of classical Inc. is 0.002, what is the approximate beta value of the stock classic Inc.? a. 0.057 b. 0.085 c. 1.000 d. 1.235 e. 1.632