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\mathrm{.}5015\%15\%$

Stock B $150$ $$2\mathrm{.}0012\%9\%$

You also know that the correlation coefficient 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 risk$-$free rate?

$($d$)$ What is the expected return of an efficient portfolio that has the same standard

deviation as Stock A$?$ What is its beta?

Imagine an economy that is only made of two stocks and a risk$-$free security, with the

following data.

You also know that the correlation coefficient 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 risk$-$free rate?

$($d$)$ What is the expected return of an efficient portfolio that has the same standard

deviation as Stock A$?$ What is its beta?

I believe the standard deviation for part A should be around $9\%$ and expected return $13\%.$ Please double check