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Stock A has a beta of 1.50 and a standard deviation of return of 35%. Stock B has a beta of 4.25 and a standard

Stock A has a beta of 1.50 and a standard deviation of return of 35%. Stock B has a beta of 4.25 and a standard deviation of return of 85%. Assume that you form a portfolio that is 60% invested in Stock A and 40% invested in Stock B. The expected rate of return on the market portfolio is 9.75% and the riskfree rate of return is 1.50%. The standard deviation of the market portfolio is 19.75%. According to CAPM, what is your best estimate of the correlation between stocks A and B?

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