QUESTION 5 Coley, a portfolio manager at Colony Capital Management, is using CAPM for making recommendations to her clients. Her research group has developed the following information Forecasted returns, Standard Deviations and Betas Std Devn 36.0% 25.0% 15.0% Beta Stock X Stock Y Market index Risk free rate 14.0% 17. 0% 14.0% 5.0% 0.80 1.00 Calculate expected return and alpha for each stock Identify and justify which stock would be more appropriate for an investor who wants to: a b add this stock to a well-diversified equity portfolio hold this stock as a single-stock portfolio c