In the following table, X, Y, and Z refer to stocks, while M refers to the market portfolio. The following partially complete information is available:

0. The correlation between Stocks X and Y is 0.60.

   1. Calculate the betas of Stocks X and Y.

   2. Calculate the beta of a new portfolio comprising 80% in X and 20% in Y.

   3. What is the risk-free rate of return?

   4. What is the expected return on the new portfolio in (b)?

Standard Expected Deviation Return 0.1 0.2 X Y Z M ? ? 0.216 0.120 Covariance between Stock and Market 0.01 0.025 0.052 n/a ? 0.1414