Refer to the following mean-standard deviation diagram, where M is the market portfolio. (a) (3 pts) What are the beta values of stocks A, B, and C? (b) (2 pts) Consider a portfolio consisting of 20 percent invested in A and 80 percent invested in C. What is the beta and the expected return of this portfolio? (c) (3 pts) According to the CAPM, what are the variances of the systematic risk of stocks A, B, and C? (d) (2 pts) Can we argue that Stocks B and C should be viewed as equally risky, since they have the same standard deviation? Efficient Frontier E(r) 0.14 0.11 M Expected Return rf 0.06 B Minimum Variance Set Refer to the following mean-standard deviation diagram, where M is the market portfolio. (a) (3 pts) What are the beta values of stocks A, B, and C? (b) (2 pts) Consider a portfolio consisting of 20 percent invested in A and 80 percent invested in C. What is the beta and the expected return of this portfolio? (c) (3 pts) According to the CAPM, what are the variances of the systematic risk of stocks A, B, and C? (d) (2 pts) Can we argue that Stocks B and C should be viewed as equally risky, since they have the same standard deviation? Efficient Frontier E(r) 0.14 0.11 M Expected Return rf 0.06 B Minimum Variance Set