and the market risk premium is 8%? Stock Beta Expected Return .68 8.2% 1.42 13.9% 1.23 11.8% D 1.31 12.6% E .94 9.7% A. A B. B C.C D. D E. E (70, The variance of Stock A is .004, the variance of the market is .007 and the covariance between the two is .0026. What is the correlation coefficient? A. .9285 B..8542 C. .5010 D. .4913 E..3510 71. A portfolio has 50% of its funds invested in Security One and 50% of its funds invested in Security Two. Security One has a standard deviation of 6%. Security Two has a standard deviation of 12%. The securities have a coefficient of correlation of 0.5. Which of the following values is closest to portfolio variance