Consider an economy in which the CAPM holds. The market portfolio (M) offers an expected return of 10% and a standard deviation of 12%. The risk-free rate (F) is equal to 4%. You have the following information about portfolio (P) composed of 3 stocks:

Stock	Portfolio Weight	Standard Deviation	Correlation with M
A	0.24	0.15	0.4
B	0.36	0.09	0.2
C	0.40	0.24	0.8

a) Compute the beta of the three stocks.

b) Compute the expected return of the three stocks.

c) Compute the expected return and beta of portfolio P.

d) Find an efficient portfolio that has the same expected return as P. What is the beta of this portfolio? Compute its standard deviation and correlation with the market.