You have observed the following returns over time: Assume that the risk-free rate is 6% and the market risk premium is 5%. Assume that the covariance COV(rx,rm) is 0.016 and the covariance COV(ry,rm) is 0.0078 . i=VAR(rm)COV(ri,rm) a. Calculate the variance of the market return VAR (rm). b. Calculate the betas of Stock X and Stock Y. Which stock is more volatile? Why? c. Calculate the required returns on Stocks X and Y using CAPM. d. If an investor creates a portfolio consisting of 80% of stock X and 20% of stock Y, would the share risk premium be greater than, equal to, or less than the share risk premium of Stock X? Why? Calculations are not required