Use the following information on a risky asset, A and the market portfolio, M as determined by an investor's analysis to answer the questions:

E(RA) = 5.20%

E(RM ) = 4.60%

²_A= 93.15 (or 0.009315)

²_M = 37.21 (or 0.003721) _A,M = 58.50 (or 0.005850)

The risk-free rate RF = 2.50%.

1. Calculate the expected return and standard deviation of a portfolio, P that is constructed such that 60% is in Asset A and 40% in M.
2. Use the given inputs above to calculate the expected return and standard deviation of a portfolio, C that is constructed such that 30% is in the risk-free asset F and 70% in the market portfolio, M.
3. Now use the CML relationship to calculate the expected rate of rate on portfolio, C if the standard deviation of C is 4.27%
4. Calculate the beta of asset A.
5. Now assume that the beta of asset A is 1.35 and that the given E(R_M) is an accurate measure of the expected return on the market, determine whether asset A is over-priced, underpriced, or correctly priced.