Problem 3 In Simpleland there are only two risky stocks, A and B, whose details are listed in the following table ber of shares Price Expected rate of re- turn 15% 12% Standard deviation of returrn 15% 9% Num per share outstanding Stock A 100 Stock B150 $1.50 $2.00 Furthermore, the correlation coefficient between the returns of stocks A and B is risk-free asset and Simpleland satisfies the CAPM exactly. pAB - . There is also a 1. What is the expected rate of return of the market portfolio? 2. What is the standard deviation of the market portfolio? 3. What is the beta of stock A? 4. What is the risk-free rate in Simpleland