Consider the following information about the market and two individual stocks: a) What are the expected returns and standard deviations of stocks ANT and BEE? (4 marks) Which stock has more total risk? Explain. (1 marks) b) What is the expected market return? (2 marks) If the risk-free rate is 2%, what is the market risk premium? (2 marks) c) Compare stocks ANT and BEE, which stock has more systematic risk? Which stock has more unsystematic risk? Explain. (4 marks) d) You have 100 million to invest in the two stocks, and you plan to invest 40 million in stock ANT and 60 million in stock BEE. - What would be the portfolio expected return and standard deviation? (4 marks) - If the inflation rate is 3%, what's the portfolio's real return? (1 marks) - What is the portfolio's beta? (1 marks)