Suppose you have invested RM$200,000$ in the following five stocks:

The risk$-$free rate is $4\%$ and the expected return on the market portfolio is $13\%.$

Required:

Based on Capital Asset Pricing Model $($CAPM$)$:

a$.$ Calculate the market risk premium.

b$.$ Calculate the required return for each stock.

c$.$ Calculate the beta and the required return on the portfolio.

d$.$ If you require to increase the required return on the portfolio to $20\%$ based on the current

stocks, what would you do$?$

e$.$ Briefly explain the difference between standard deviation and beta factor