= Assume the market portfolio M has expected rate of return to 0.12 and standard devi- ation om = 0.3. The risk-free rate is rf 0.02. There is another stock A in the market with 0 A = 0.6, PAM = 0.1. (a) Find BA and rA. (b) A new asset B has the same expected return as A but a standard deviation of ob 0.8. What is the idiosyncratic error of B? (c) Another asset C enters the market with PCM = 0.8. What percentage of the risk of C idiosyncratic? = = Assume the market portfolio M has expected rate of return to 0.12 and standard devi- ation om = 0.3. The risk-free rate is rf 0.02. There is another stock A in the market with 0 A = 0.6, PAM = 0.1. (a) Find BA and rA. (b) A new asset B has the same expected return as A but a standard deviation of ob 0.8. What is the idiosyncratic error of B? (c) Another asset C enters the market with PCM = 0.8. What percentage of the risk of C idiosyncratic? =