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Please show all work so I can learn how to do it!!! Thank you! You observe the following information in a market where the CAPM

Please show all work so I can learn how to do it!!! Thank you!image text in transcribed

You observe the following information in a market where the CAPM holds: The correlation between stock A and the market is 80%. If the CAPM holds for both stocks, please find the expected annual market return and the risk-free rate. Consider a portfolio that is split (unevenly) between the risk-free asset and the market. If the annual standard deviation of this portfolio is 16%, what is the expected annual return on this portfolio

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