C. (8 marks) Assume that the CAPM holds in the economy. The following data is available about the market portfolio, the riskless rate, and two risky assets, W and X: The market portfolio has a standard deviation equals to 10%, stock W has an expecte return equals to 16%, standard deviation equals to 12%, and beta equals to one, stock X has a standard deviation equals to 6% and beta equals to 0.7. The risk-free rate is 3%. 1. What is the expected return and the beta of the market portfolio? (2 marks) 2. What is the expected return on asset X? (2 marks) 3. Does asset W lie on the Capital Market Line? Explain why or why not. (2 marks) 4. Suppose you invested $100,000 in these two stocks. The beta of your portfolio is 1.25. How much did you invest in each stock? What is the expected return of this portfolio? (2 marks)