• What are the critical assumptions of the capital assets pricing model (CAPM)? Give a   
•  brief description of each assumption.                                                                       
• The standard deviation of Cotton Printers company’s stock is 28% and its correlation coefficient with the market portfolio is 0.50. The market portfolio has an expected return of 16% and standard deviation of 20%
• What is the systematic risk (beta) of Cotton Printers stock?                                           
• What would happen to the systematic risk (beta) if Cotton Printers standard deviation were 40%?                                                                                                            
• What if correlation coefficient were 0.60?                                                                      
• Explain what portion is accounted for by systematic risk and by unsystematic risk