Question 1: Matching

Question 2: Please provide formula for below

You have just been hired by CAPM advisors, a company that uses the CAPM to analyze stock returns. You have been assigned to replace one of the team's best analysts after she quit suddenly to go work at a hedge fund. Unfortunately, however, almost all of her notes are incomplete, except for one memo you find in which she argued that the correct standard deviation for the market return is 0.2. Use your knowledge of finance and the CAPM to finish the rest of her analysis. Question 1 (4 points) Saved You have found four analyses performed by the former analyst. For each stock, she computed the expected return according to the CAPM. However, the paper records have gotten out of order, and it is no longer clear which expected return forecast belongs with which stock. Figure out which expected return is associated with which stock based on the standard deviation of its return and the correlation of its return with the return on the market portfolio. 1. Expected return =11.5% 2. Expected return =10% 3. Expected return =6.5% 4. Expected return =4.0% Use your previous solution to the matching problem to figure out the risk-free rate the former analyst must have used in her calculations