Question: section A &B 2. (10 Points Suppose CAPM holds. The beta of Stock X is 2.00, and the variance of X is 0.25. The correlation

section A &B

2. (10 Points Suppose CAPM holds. The beta of Stock X is 2.00, and the variance of X is 0.25. The correlation between X and the market portfolio is 0.64. The covariance between Stock Y and the market portfolio is 0.02. (a) What is the standard deviation of the market portfolio? (b) What is the beta of Y

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