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Figure 1211 shows plots of monthly rates of return on three stocks versus the stock market index. The beta and standard deviation of each stock'is

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Figure 1211 shows plots of monthly rates of return on three stocks versus the stock market index. The beta and standard deviation of each stock'is given beside its plot Required: a. Which stock is safest for a diversified investor? b. Which stock is safest for an undiversified investor who puts all her funds in one of these stocks? c. Consider a portfolio with equal investments in each stock. What would this portfolio's beta have been? d. Consider a well-diversified portfolio made up of stocks with the same beta as Intel. What are the beta and standard deviation of this portfolio's return? The standard deviation of the market portfolio's return is 20% e. What is the expected rate of return on each stock? Use the capital asset pricing model with a market risk premium of 8%. The risk- free rate of interest is 4% Complete this question by entering your answers in the tabs below. Reg A and B Regc Reg D RegE What is the expected rate of return on each stock? Use the capital asset pricing model with a market risk premium of 8%. The risk-free rate of interest is 4%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected Rate of Return Marathon Intel Walmart %

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