Question 11 1 pts Suppose a stock (Q) and a Portfolio (P) have returns that are well explained the following Index models: TQX- raq + Bo[rme -ry] +eQ.! TP.X-r/= ap + BP|Tm, - ril+ep,4 Stock Q is included among the stocks in Portfolio P. All stocks in portfolio P have the same standard deviation as stock Q and the returns of the stocks in portfolio Pare imperfectly correlated with each other. The market return has standard deviation of 0.22 and the risk-free rate is 0.033. The portfolio of stocks, P. has an alpha of zero and a beta on the market of 1.5. If both stock Q and the portfolio have the same R, then Stock Q must have a beta equal to 1.5 Stock Q must have an alpha that is less than zero Stock Q must have a beta lower than 1.5 Stock Q must have a beta higher than 1.5 Question 12 1 pts Suppose you toss a coin every day for the next 10 years. If the coin comes up tails, the return is 1%, if heads the return is -1%. If you measure the beta of this asset using the ASX200 as the market index, which scenario has the highest probability to occur? OB=1 -0.01