Suppose you group all the stocks in the world into mutually exclusive portfolios (each stock is in only one portfolio): growth stocks and value stocks, Suppose the two portfolios have equal size (in terms of total value), a correlation of 0.5, and the following characteristics: The risk free-rate is 3%. a. What is the expected return and volatility of the market portfolio (which is a 50-50 combination of the two portfolios)? b. Calculate the Sharpe ratios of the value stock, growth stock, and market portfolio. c. Does the CAPM hold in this economy? (Hint: Is the market portfolio efficient?) a. What is the expected return and volatility of the market portfolio (which is a 5050 combination of the two portfolios)? The expected return of the market portfolio is % (Round to one decimal place.) - X Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Expected Return Volatility Value Stocks 14% 10% Growth Stocks 19% 30% Print Done