Question #4: The Stock Market: Investments: 12%: Suppose youre 55% invested (portfolio) in asset classes A and 45% invested in asset class B. Asset A gives you a return of 12.8% and has a standard deviation of 26.8%. Asset B4 gives you a return of 6.8% and has a standard deviation of 18.2%. The correlation between A and B is 0.72. The correlation between the market and A(B) is 0.65(0.41). The market has an average return (standard Deviation) of 10.5% (22%). Government of Canada 10-Year Treasury bonds yield is 1.2%. [1] What is the expected return and standard deviation of your Portoflio [2] Compute the Sharpe ratio of each asset class and your portfolio [3] using CAPM compute the expected returns of each asset class and your portfolio. What is the key take away from your analysis (overprice/underprice)?