QUESTION 1 Assume that 3 stocks constitute the market portfolio. Those stocks have the following proportions and covariances with the market portfolio: Stock Proportion Covariance with Market A 35% -0.05 B (a) 0.10 40% 0.15 (a) The proportion of Stock B should be (1 mark) (b) The market portfolio's variance is (Note: Round to two decimal places.) (1 mark) (c) According to the single-factor model (the market model), the total risk (variance) of Stock A should be if the unsystematic risk is 5%. (Note: Round to two decimal places.) (1 mark)