Sharpe Ratio
a.	Calculate the Sharpe Ratio for the portfolio identified in Q3 part d and explain what the Sharpe ratio tells us? (2 marks)
				Std Deviation	Expected Return
b.	Consider instead a portfolio with 45% invested in a risk free asset and 55% invested in Stock X. What is the standard deviation of this portfolio and what is the expected return? (2 marks)
				Stock X	Stock Y
c.	Calculate beta for stock x and stock y. (4 marks)
				Stock X	Stock Y
d.	Based on the Capital Asset Pricing Model, what is the required return for stock X and stock Y? (2 marks)
				Portfolio Beta
e.	What is the beta of a portfolio that 1/3 invested in a risk free asset, 1/3 invested in stock X and 1/3 invested in stock Y? (1 mark)
				Stock X	Stock Y
f.	What weighting should be invested in Stock X and Stock Y to get a portfolio beta equal to the beta of the market portfolio? (2 marks). If you get a negative weighting for one of your stock positions what do you think that means? (1 mark)

n Question 4 - CAPM Please do not use column Aas I would like to use it to record my marking. Here are the monthly closing prices for Stock X and Stock y for the last year (the same data as you were given in the previous question). In addition the market closing prices have been provided. Note that if you see #value! In the cells below it means you havent entered your student number in the yellow cell on the Cover Tab. Month Ended 2019-11-30 2019-12-31 2020-01-31 2020-02-29 2020-03-31 2020-04-30 2020-05-31 2020-06-30 2020-07-31 2020-08-31 2020-09-30 2020-10-31 Stock X Closing Price Stock Y Closing Price $ 45.30 $ 21.09 45.11 22.55 39.07 18.78 37.04 14.42 41.12 16.00 40.97 17.37 40.31 16.16 39.85 18.28 39.14 16.52 37.64 14.32 33.42 18.78 34.18 19.67 Stock Market Closing Price 3,230.78 3,225.52 2,954.22 2,584.59 2,912.43 3,044.31 3,100.29 3,271.12 3,500.31 3,363.00 3,269.96 3,315.70 Assume that the risk free rate is 1.5% and that the annual expected return on the market is the average of the last 12 monthly returns times 12. n Question 4 - CAPM Please do not use column Aas I would like to use it to record my marking. Here are the monthly closing prices for Stock X and Stock y for the last year (the same data as you were given in the previous question). In addition the market closing prices have been provided. Note that if you see #value! In the cells below it means you havent entered your student number in the yellow cell on the Cover Tab. Month Ended 2019-11-30 2019-12-31 2020-01-31 2020-02-29 2020-03-31 2020-04-30 2020-05-31 2020-06-30 2020-07-31 2020-08-31 2020-09-30 2020-10-31 Stock X Closing Price Stock Y Closing Price $ 45.30 $ 21.09 45.11 22.55 39.07 18.78 37.04 14.42 41.12 16.00 40.97 17.37 40.31 16.16 39.85 18.28 39.14 16.52 37.64 14.32 33.42 18.78 34.18 19.67 Stock Market Closing Price 3,230.78 3,225.52 2,954.22 2,584.59 2,912.43 3,044.31 3,100.29 3,271.12 3,500.31 3,363.00 3,269.96 3,315.70 Assume that the risk free rate is 1.5% and that the annual expected return on the market is the average of the last 12 monthly returns times 12