Question: Consider a fully diversified portfolio and assign an expected return on this portfolio, depending on your own choice. (The use of the same input data

Consider a fully diversified portfolio and assign an expected return on this portfolio, depending on your own choice. (The use of the same input data will be treated as a cheat attempt and will be penalized severely).
a) Find the beta of this fully-diversified portfolio according to CAPM, if the rate of return on risk-free asset is 4% and you expect the rate of return on the market index to be 14%.
b) If the standard deviation of the return on the fully-diversified portfolio is 60%, calculate the standard deviation of the return on the market index.

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