5). The risk free return is 5.75 per cent, Company J has a beta of 1.45 and an expected return of 15 per cent. Calculate the risk premium for the market index over the risk free assuming J is on the security market line. 6). Given the following expected returns and standard deviations for shares X and Y, what is the expected return and standard deviation for a period composed of 70 per cent the X and 30 per cent of Y, assuming X and Y have a perfect negative correlation