Please include formulas used. thank you, i will rate.

Om 7. Assume the market portfolio has expected rate of return im 0.12 and standard deviation 0.3. The risk-free rate is ro = 0.02. There is another stock, A, in the market with 0.6 and Pam 0.1. (a) Find a and Ba. (b) A new asset, B, has the same expected return as A but a standard deviation of of = 0.8. What is the idiosyncratic error of B? (c) Another asset, C, enters the market with Pc = 0.8. What percentage of the risk of C is idiosyncratic? 11 Om 7. Assume the market portfolio has expected rate of return im 0.12 and standard deviation 0.3. The risk-free rate is ro = 0.02. There is another stock, A, in the market with 0.6 and Pam 0.1. (a) Find a and Ba. (b) A new asset, B, has the same expected return as A but a standard deviation of of = 0.8. What is the idiosyncratic error of B? (c) Another asset, C, enters the market with Pc = 0.8. What percentage of the risk of C is idiosyncratic? 11