Task 3 Weight 15 points In an imaginary economy, companies A and B are responsible for all private-economic value creation. The shares in the two companies are traded on the stock exchange and thus constitute the market portfolio in this economy The market value of the equity in company Ais currently 1,000, the share's expected retum is 10% with standard deviation 15%. The market value of the equity in company B is 500, the share expected return is 5% with standard deviation 10%. The correlation between stock returns -0.50 The public sector issues risk-free bonds at 2% interest per year Show carefully how to calculate the answers to the questions below: (a) 10p What is the market portfolio's expected return and risk Anta at porte- the follow weights are determined based on the relative market values of the shares (b) 5 You are considering an investment project with a beta of 1.5 measured against market the sequence calculated in (@) above. What should be the required rate of return according to to the capital alue moder