Q1: A stock A has an estimated market beta of 0.8. The sample standard deviation of the market portfolio is 25%. What is the sample covariance between the stock A and the market portfolio?

Q2: The standard deviation of the market portfolio is 10%. Which of the following stock has the lowest idiosyncratic risk? (A) Stock A with standard deviation = 15% and market beta = 1.2 (B) Stock B with standard deviation = 12% and market beta = 0.9 (C) Stock C with standard deviation = 10% and market beta = 0.8 (D) Stock D with standard deviation = 20% and market beta = 1.5