= Question No. 05: [Marks: 3+7 = 10) a) What is the relationship between covariance and the correlation coefficient? b) You are given the following information on two securities, the market portfolio, and the risk-free rate: Expected Correlation with Standard Return Market Portfolio Deviation Security 1 15.5% 0.9 20.0% Security 2 9.2 0.8 9.0 Market portfolio 12.0 10.0 Risk-free rate 5.0 0.0 0.0 i. Draw the SML. ii. What are the betas of the two securities? iii. Plot the two securities on the SML. 1.0