Suppose the Capital Asset Pricing Model (CAPM) holds. The market risk premium is 6% and the standard deviation of the market portfolio is 15%. Stock A has a beta of 1 and Stock B has a beta of 2. The riskfree rate is 3%.

(a) Calculate the expected returns of Stock A and Stock B.

(b) Do we have enough information to calculate the correlation between Stock A and Stock B? Briefly explain.

(c) Do we have enough information to calculate the correlation between A and B, if they are well-diversified portfolios (i.e., there is no diversifiable risk) instead of stocks? Briefly explain.