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You have been provided with the following data on the securities of two firms (firm D and firm G), the market portfolio and the risk-free

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You have been provided with the following data on the securities of two firms (firm D and firm G), the market portfolio and the risk-free asset: Security ri Oi PiM Bi D 0.18 0.25 0.80 X1 G X2 0.29 0.40 X4 Market 0.14 0.12 1.00 X3 Risk-free asset 0.03 0.00 X6 X5 where r; is the average realized return of asset i in the recent past (equal to its expected return today), oj is the standard deviation of asset i's returns, Pim is the correlation of asset i's returns with the market returns and B; is the beta of asset i. Assume the CAPM holds true. Provide an evaluation of the investment performance for stock D and make a justified investment recommendation

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