Please show all your work $-$ formulas, inputs and results.

You want to invest $$10,000$ in the stock market. You are particularly interested in the

stock of two companies, A and B$.$ You have three options:

Invest the $$10,000$ in stock A only.

Invest the $$10,000$ in stock B only.

Invest $$5,000$ in stock A and $$5,000$ in stock B$.$

Here are the details for each of the three options:

Calculate the missing values for Option $3.$

Which option is the most interesting in terms of return?

If you want to minimize your total risk $($measured by the variance$/$standard devia$-$

tion$),$ which of the three options is the most interesting?

If you wish to minimize your market risk $($measured by beta$),$ which of the three

options is the most interesting?