Stocks A and B both have an expected return of $10\%$ and a standard deviation of returns of $25\%.$

Stock A has a beta of $0\mathrm{.}8$ and Stock B has a beta of $1\mathrm{.}2.$ The correlation coefficient, r$,$ between the

two stocks is $0\mathrm{.}6.$ Portfolio P has $50\%$ invested in Stock A and $50\%$ invested in B$.$ Which of the

following statements is CORRECT?

a$.$ Based on the information we are given, and assuming those are the views of the marginal

investor, it is apparent that the two stocks are in equilibrium.

b$.$ Portfolio P has more market risk than Stock A but less market risk than B$.$

c$.$ Stock A should have a higher expected return than Stock B as viewed by the marginal

investor.

d$.$ Portfolio P has a coefficient of variation equal to $2\mathrm{.}5.$

Ivan Knobel holds a well$-$diversified portfolio that has an expected return of $11\mathrm{.}0\%$ and a beta of