Hello, I need help answering these two questions. Thank you!

. Using historical data you estimate the expected return and beta for Stock A as 9.5% and 1.2, and for Stock B as 14% and 1.8. The expected return of the market portfolio is 9% and the riskfree rate is 5%. If CAPM holds, which stock should you invest in? . Imagine an economy that is only made of two stocks and a risk-free security, with the following data. Number of Shares Price Expected Return Standard Deviation Stock A 100 $1.50 15% 15% Stock B 150 $2.00 12% 9% You also know that the correlation coefcient between Stock A and Stock B is 1/3, and assume the CAPM holds. a What are the expected return and standard deviation of the market portfolio? b What is the beta of Stock A? (c What is the riskfree rate? (d What is the expected return of an eicient portfolio that has the same standard deviation as Stock A? What is its beta? ) ) ) )