You are managing an equal-weighted portfolio of stocks on behalf of your companys treasury. Assume that stock A and stock B are two risky assets. C is a risk-free asset. The details of these stocks are below: Stock A Stock B C (Risk-free asset rf) Average return 7.00% 15.00% 2.00% Variance of return 0.0064 0.0196 Sigma of return 8.00% 14.00% Covariance of returns 0.0011 Required

Using the information in the above stated table calculate the following:

a. Expected market portfolio return, E(RM) b. Market excess return c. The Sharpe ratio