The risk free rate is 5%, the expected market return is 13%, and the volatility (standard deviation of returns) of the market is 20%. Stock X's volatility is 28% and its correlation coefficient with the market returns is 0.80. The volatility of stock Y is 35% and its correlation coefficient with the market return is 0.5.

A. What is the beta of X and beta of Y?

B. Which stock has a higher total risk? Why? Which stock has a higher systematic risk? why? Which stock would investors demand a higher return from? why?

C. which returns would investors demand from X and from Y?