You are considering making additional investments, and have gathered data about two risky stocks: Stock Expected Return Beta Firm-Specific Standard Deviation CVX 11.5 % 1.10 24% Forsythe Inc. 16 % .75 28% Assumptions: The expected market return (as measured by the S&P 500 Index) is 10%. The standard deviation of the S&P 500 Index is 15%. a. Calculate the standard deviation (i.e. the total risk) of CVX. (2 points) b. Calculate the standard deviation (i.e. the total risk) of Forsythe. (2 points) c. Calculate the covariance between the two stocks. (4 points) d. Calculate the correlation between the two stocks. (4 points) e. How does the single-index model improve on the traditional Markowitz approach to creating portfolios? (3 points)