Question: (1 pt) Consider a world with only two risky assets, A and B, and a risk-free asset. Stock A has 200 shares outstanding, a price

(1 pt) Consider a world with only two risky assets, A

(1 pt) Consider a world with only two risky assets, A and B, and a risk-free asset. Stock A has 200 shares outstanding, a price per share of 3, an expected return of 0.16 and a volatility of 0.3. Stock B has 300 shares outstanding, a price per share of 4, an expected return of 0.1 and a volatility of 0.15. The correlation coefficient/AB 0.4 . Assume CAPM holds. (a) What is expected return of the market portfolio? (b) What is volatility of the market portfolio? (c) What is the beta of each stock? .A (d) What is the risk-free rate

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