If a company has a beta of 2 , when the risk-free rate is 3% and the market risk premium is expected to be 8.5%, what would the company's cost of equity capital be? Question 8 What should you expect the variance of a portfolio constructed with equal proportions of two assets each with the following characteristics be (round your answer to 4 decimal places): Asset A - Expected return 20\%, expected standard deviation of returns 15\%, Beta 1.7 Asset B - Expected return 10\%, expected standard deviation of returns 10\%, Beta .. Assume the returns on the two assets have a .60 correlation coefficient