A) Use the information provided in the table below to answer the following questions: Security A Security B E(R) 12% 13% Standard Deviation 0.021 0.029 Beta 1.1 1.2 Variance of the market 0.0002 Correlation Coefficient (A, B) 0.6 1) suppose you split your money 50 - 50 between the two securities what is the expected return of the two-security portfolio? 2) what is the portfolio beta? 3) what is the covariance between security A and the market? 4) what is the portfolio variance? 5) if the risk free rate is 8%, what is the expected return and variance of a portfolio containing 50% of the risk-free rate and 50% of the security B? B) A security has a beta of 1.23 the risk-free rate of interest is 8% and the market is expected to earn 14% what is the expected return on the security? C) Consider the following information: Stock price = $46.69 Current dividend = $1.98 Future dividend growth rate 5.5% Beta = 1.10 30 day T bill rate =2.55% Equity risk premium = 8.2% You want to set a buy limit at 90% of the intrinsic value of the stock as determined using the dividend discount model. What should that price be?