Please answer the questions and explains with details. Thank you so much!

Problem 2: True or False (6 points) Are the following statements true or false? Please briefly explain your answer a) (2 points) There are 2 stocks: A and B. Stock B has a smaller standard deviation than stock A. Statement: The variance of a portfolio of stocks A and B must be at least as high as the variance of stock B. b) (2 points) CAPM holds. Statement: If the expected market return increases, but stock A beta and risk-free rate stay constant, then the expected return on stock A must increase