Stock	Investment	Standard deviation	Expected Rate of Return	Correlation Coefficient
				A	B	M
A	70%	10%	20%	1	0.04	0.8
B	30%	8%	10%		1	0.5
Market Portfolio		4%	13%			1
Risk-free investment		0%	5%

Use the above table to answer the following questions:

1. Compute the market risk premium

2. Compute the required Rate of Return for stock A.

3. Compute the required Rate of Return for stock B.

4. Compute the required Rate of Return for the portfolio.

5. Compute the risk for a portfolio contains stock A and stock B.