Answer the following questions regarding the index model.

a. other things being equal, when the correlation coefficient between the risky asset A and the market portfolio is increased, is the price of asset A also increased? explain briefly.

b. what is the correlation coefficient between the risk-free asset and the market portfolio.

e. The alpha of a stock is 0%. The return on the market index is 10%. The risk-free rate of return is 5%. The stock earns a return that exceeds the risk-free rate by 5%, and there are no firm-specific events affecting the stock performance. What is the beta of the stock?