A recent study of cryptocurrencies, such as Bitcoin, found "almost no statistically significant correlation of cryptocurrencies with traditional asset classes." In the spirit of this study, assume that Bitcoin returns have zero correlation with market returns. Answer the following: 1. According to the CAPM, what is the expected return and risk premium for Bitcoin? (2 points) 2. Is Bitcoin a risky asset? Answer this question by writing a few carefully considered sentences that contrast the situation of 1) an investment manager who is considering adding a position in Bitcoin to a large portfolio that includes an array of equity, bond, real estate, and commodity positions, and 2) an individual with limited savings who considers investing recently received proceeds from a significant monetary court award into Bitcoin. (4 points) A recent study of cryptocurrencies, such as Bitcoin, found "almost no statistically significant correlation of cryptocurrencies with traditional asset classes." In the spirit of this study, assume that Bitcoin returns have zero correlation with market returns. Answer the following: 1. According to the CAPM, what is the expected return and risk premium for Bitcoin? (2 points) 2. Is Bitcoin a risky asset? Answer this question by writing a few carefully considered sentences that contrast the situation of 1) an investment manager who is considering adding a position in Bitcoin to a large portfolio that includes an array of equity, bond, real estate, and commodity positions, and 2) an individual with limited savings who considers investing recently received proceeds from a significant monetary court award into Bitcoin. (4 points)