(6 marks) Question 5 Dr. Danielle is considering investing in a project with beta coefficient of 1.75. This investment has an 11.5 percent rate of return, the risk-free rate is 5.5 percent, and the rate of return on the market portfolio of assets is 8.5 percent? Required: (a) Calculate the required rate of return. (b) Are you recommend to him to take this investment? Why? (3 marks) (4 marks) TOTAL = 40 MARKS Question 4 Given the returns of two stocks J and K in the table below over the next 4 years. Find the expected return and standard deviation of holding a portfolio of 40% of stock J and 60% in stock K over the next 4 years: 2020 2021 Stock J 10% 12% Stock K 9% 8% 2022 2023 13% 15% 10% 11% (6 marks)