The Northern Peninsula stock market has only two listed stocks, Big Mining and Shallow

Mining as below. The risk$-$free rate is $1\%.$

$(1)$ Using Excel's Solver, find the market portfolio $($with the highest Sharpe ratio$)$ in Northern

Peninsula. Calculate its mean return, standard deviation and Sharpe Ratio. $(6$ pts$)$

$(2)$ Find the $$ of each of the two stocks. $(6$ pts$)$

$(3)$ Calculate the expected return on each stock according to SML$.$ Do your results agree with the

expected return reported above for the two stocks? Why or why not? $(6$ pts$)$

$($please do in excel$)$