Consider the following information on Pepsi and Apple stocks: 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. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a) Find the expected returns on Pepsi and Apple. (Enter percentages as numbers, without the \% sign. Use a dot (not a comma!) for the decimal separator. (e.g., 5.873% would be entered as 5.87.) Pepsi % Apple % b) Imagine you have $1000 cash to invest. You short-sell $500 worth of Pepsi and put the proceeds along with your own capital into the Apple stock (total of $1500 ). What is the expected return and standard deviation of this portfolio? Expected Return % Standard Deviation % c) Find the efficient portfolio E offering the same expected return as the portfolio in part b ("find" means specify the weights of the assets). What is the standard deviation of this portfolio? (Enter weights as decimals. (e.g., a 25% weight would be entered as 0.25.)) Weight Pepsi Weight Apple Weight Market Weight Risk-free Portfolio E Std. Dev. % d) Find the efficient portfolio F offering the same standard deviation as the portfolio in part b ("find" means specify the weights of the assets). What is the expected return of this portfolio? Weight Pepsi Weight Apple Weight Market Weight Risk-free Portfolio F Exp. Ret. %