Problem 11-29 Correlation and Beta You have been provided the following data about the securities of three firms, the market portfolio, and the risk-free asset: a. Fill in the missing values in the table. (Leave no cells blank - be certain to enter 0 wherever required. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Correlation* Beta Standard Deviation 0.22 0.95 1.50 Security Firm A Firm B Firm C The market portfolio The risk-free asset Expected Return 0.119 0.131 0.112 0.12 0 .05 0.41 0.26 0.75 0.19 * With the market portfolio b-1. What is the expected return of Firm A? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return 0 % b- What is your investment recommendation regarding Firm A for someone with a well- 2. diversified portfolio? 2. diversified portfolio? Sell Buy b- What is the expected return of Firm B? (Do not round Intermediate calculations and 3. enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % b- What is your investment recommendation regarding Firm B for someone with a well- 4. diversified portfolio? Sell Buy b- What is the expected return of Firm C? (Do not round Intermediate calculations and 5. enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return [ % b- What is your investment recommendation regarding Firm C for someone with a well- 6. diversified portfolio? Sell Buy