There are three stocks on the market and we are given the following information : The market portfolio has a volatility of 20% and an expected return of 15%. The risk-free interest rate is 5%. An investor forms a stock portfolio P (which is not necessarily the market portfolio), 25% of which is stock 1,50% of which is stock 2 , and 25% of which is stock 3 . a) Use the CAPM to find the expected return on stock 1 b) Find the beta of the portfolio P c) Find the expected return of the portfolio P d) Find the correlation of this stock portfolio P with the market portfolio