. Part (6 Marks) There is also another stock, B. The observed (actual) return on stock B is E[R] -0.13, its standard deviation is 0, -0.55, its beta is Ba= 0.14, and its returns are perfectly negatively correlated with returns on stock A (i.e., p=-1). Show that there is an arbitrage opportunity. Describe a strategy that would get you a free lunch. In this strategy, you can trade stock A, stock B, and the risk-free asset at the risk-free rate you computed in part (b). (Hint: What is the return on the minimum variance portfolio of stocks A and B?) Part D (5 Marks) Keeping other things constant, what should the expected return on stock B in part (c) be so that there is no arbitrage opportunity? . Part (6 Marks) There is also another stock, B. The observed (actual) return on stock B is E[R] -0.13, its standard deviation is 0, -0.55, its beta is Ba= 0.14, and its returns are perfectly negatively correlated with returns on stock A (i.e., p=-1). Show that there is an arbitrage opportunity. Describe a strategy that would get you a free lunch. In this strategy, you can trade stock A, stock B, and the risk-free asset at the risk-free rate you computed in part (b). (Hint: What is the return on the minimum variance portfolio of stocks A and B?) Part D (5 Marks) Keeping other things constant, what should the expected return on stock B in part (c) be so that there is no arbitrage opportunity