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(Simpleland) In Simpleland there are only two risky stocks, A and B, whose details are listed in Table 7.4. TABLE 7.4 Details of Stocks A

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(Simpleland) In Simpleland there are only two risky stocks, A and B, whose details are listed in Table 7.4. TABLE 7.4 Details of Stocks A and B Furthemore, the correlation coefficient between the returns of stocks A and B is AB=31 There is also a risk-free asset, and Simpleland satisfies the CAPM exactly (a) What is the expected rate of return of the market portfolio? (b) What is the standard deviation of the market portfolio? (c) What is the beta of stock A ? (d) What is the risk-free rate in Simpleland

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