Suppose that all assumptions of CAPM hold. Suppose that there are only two risky assets in...

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Suppose that all assumptions of CAPM hold. Suppose that there are only two risky assets in the market, A and B. A has expected return of F=8%, and B has expected return of FD=15%. A has standard deviation of return of = 25%, and B has standard deviation of return of = 35%. Returns of A and B are uncorrelated with each other. The risk-free rate is ry=4%. Compute the weight of asset A in the market portfolio. WA Suppose that all assumptions of CAPM hold. Suppose that there are only two risky assets in the market, A and B. A has expected return of F=8%, and B has expected return of FD=15%. A has standard deviation of return of = 25%, and B has standard deviation of return of = 35%. Returns of A and B are uncorrelated with each other. The risk-free rate is ry=4%. Compute the weight of asset A in the market portfolio. WA