Consider the following information on Pepsi and Apple stocks. Beta Standard Deviation Pepsi 0.39 12% Apple 1.25 36% The expected return on the market portfolio Is 12% and its standard deviation is 24%. The risk free rate is 6%. The correlation coefficient between Pepsi and Apple is 0.65. Assume that CAPM holds. There are no short-selling restrictions, and you can borrow and lend at the risk-free rate. {Round your final answers to 2 decimal places. Enter percentages "as-is, without the sign, enter welonts as decimals te...5.0735 return would be entered as 5.37. A weight of 0.257 would be entered as 0.26)). a) Find the expected returns on Pepsi and Apple Pepsi % Apple b) Imagine you have $1000 cash to invest. You short-sell 5500 worth of Pepsi and put the proceeds along with your own capital into the Apple stock (total of $1500). What is the expected retum and standard deviation of this portfolio? Standard Deviation Expected Return