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 [14]: Consider two cases that the covariance between the market portfolio and the stock of classic Inc. is (1) 0.002 and (ii) 0.001 in the above setting. Then, explain what is different between two cases and which case is more likely in the setting in the five lines. 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 [14]: Consider two cases that the covariance between the market portfolio and the stock of classic Inc. is (1) 0.002 and (ii) 0.001 in the above setting. Then, explain what is different between two cases and which case is more likely in the setting in the five lines