solve both

y tomaximize their investment returns 37. The market portfolio has an expected return of 8%. The t risk-free rate is 3%. A stock has a beta of 1.2 and an expected return of 11%, a. 4% b. 5% . 2% d. 3% The what is the alpha of this stock? e. 1% 38. Suppose you are an investor without any access to information regarding stocks. You know that other investo rket possess a great deal of information and are actively using that information to select an efficient lio. You are concerned that because you are less informed than the average investor, your portfolio w the ma portfol underperform the portfolio of the average investor. How can you prevent that outcome and guarantee tha portfolio will do as well as the average investor's portfolio? a. By investing only in stocks with high betas b. By investing only in stocks with low betas c. By shorting the market portfolio d. By investing only in bonds e. By holding the market portfolio