(a) Two new stocks, A and B, both just recently offered shares to the public and are not have the following standard deviations and expected retums: Investment or) ET) Stock A 16% 12% Stock B 22% 7% If you cared only about maximizing the Sharpe Ratio of your portfolio, which of these two stocks would you prefer buying a small amount of? (i) Stock A. (ii) Stock B. (iii) Both would help my portfolio. (iv) Neither would help my portfolio. (v) Need further information to know which I'd prefer. Briefly explain. (b) The risk-free rate for the next year is 2%. Everyone agrees that, for the next year, there are two potential investments with the following standard deviations and expected returns: Investment o r) E() Market portfolio 20% 8% International Hedge Fund 30% 11.5% Circle one (no explanation required): (1) This alone proves that CAPM is false. (ii) This alone does not prove that CAPM is false