Question: I require assistance with a two part practice problem as it relates to the topic of a well-diversified portfolio . Provided in the attachment below

 I require assistance with a two part practice problem as it

I require assistance with a two part practice problem as it relates to the topic of a well-diversified portfolio . Provided in the attachment below is the practice problem. Thank you very much!

relates to the topic of a well-diversified portfolio . Provided in the

You have been provided the following data about the securities of three firms, the market portfolio and the risk-free-asset. Security Expected Return Firm A .10 Firm B .14 Firm C .16 The Market .12 Portfolio The Risk-Free .05 Asset *With the market portfolio Standard Deviation .31 (ii) .65 .20 Correlation* Beta (i) .50 .35 (iv) .85 1.40 (iii) (v) (vi) (vii) (viii) a. Fill in the missing values in the table. b. Is the stock of Firm A correctly priced according to the capital asset pricing model (CAPM)? What about the stock of Firm B? Firm C? If these securities are not correctly priced, what is your investment recommendation for someone with a well-diversified portfolio

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