$p$

where $R_p$ is her portfolio return. If she has $$1,000$ for investment, how much

money does she have in stock A$,$ B$,$ and the risk$-$free asset? $(5$ points$)$ The return on the risk$-$free asset is $R_f=2\%.$ The table below gives theAsset allocation and CAPM: The stock market comprises two stocks, A and B$,$ and a

risk$-$free asset. expectations, standard deviations, and covariances for the two stocks' returns. Note:

Round to $4$ decimal places for values that are not in dollars.

et $(15$ points$)$

$($d B$.$

$(3$ points$)$

$($c$)$ Calculate the Sharpe Ratio of stocks A$,$ B$,$ and, the marka$)$ What are the weights of stocks A and $B$ in the tangency portfolio? $(5$ points$)$

$($b$)$ Suppose that CAPM holds, calculate the CAPM beta of stock A anportfolio. $(2$ points$)$

$($d$)$ Suppose Jane has the following utility function

$P$