Your portfolio has had a variance of 25% over the past few years. The portfolio is an equally value-weighted portfolio of two stocks (X and Y). The expected return on the market is 15%, and the risk-free rate is 7%. The covariance of stock X and the market is 22%; covariance of stock Y and the market is 15%. The variance of the market is 15%. The covariance between the two stocks has been 20%. However, stock X is much riskier than stock Y, and has a variance twice that of stock Y. c) Is the portfolio efficient? Explain in detail. (5 marks) d) "Efficient portfolios have a beta of one" Evaluate this statement. Your portfolio has had a variance of 25% over the past few years. The portfolio is an equally value-weighted portfolio of two stocks (X and Y). The expected return on the market is 15%, and the risk-free rate is 7%. The covariance of stock X and the market is 22%; covariance of stock Y and the market is 15%. The variance of the market is 15%. The covariance between the two stocks has been 20%. However, stock X is much riskier than stock Y, and has a variance twice that of stock Y. c) Is the portfolio efficient? Explain in detail. (5 marks) d) "Efficient portfolios have a beta of one" Evaluate this statement