Question 39 4 pts Stock A has an expected return of 18% and a standard deviation of 26%. Stock B has an expected return of 14% and a standard deviation of 16%. The risk-free rate is 7.8% and the correlation between Stock A and Stock B is 0.7. Build the optimal risky portfolio of Stock A and Stock B. What is the expected return on this portfolio? Question 40 3 pts Cache Creek Manufacturing Company is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at the rate of 7.3% per year. The risk-free rate of return is 5.9%, and the expected return on the market portfolio is 12.4%. Investors use the CAPM to compute the market capitalization rate on the stock and use the constant-growth DDM to determine the intrinsic value of the stock. The stock is trading in the market today at $90. Using the constant- growth DDM and the CAPM, the beta of the stock is