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Suppose that there are only two stocks available in the market, A and B. The returns are expected at the end of the year. Stock A has variance of return at 0.10; stock B has variance of return at 0.15 and a of 0.7. It is also given that the covariance between A and,B is -0.06 and that the risk-free rate is 2%. Borrowing and� depositing unlimited quantities of money are allowed at the risk-free rate. Your friend, the universally acknowledged market,expert, knows the expected returns of each stock and uses the Markowitz model to construct an efficient portfolio for the expected return that she seeks. She plans to deposit \$600 in the bank at the risk-free rate, invest \$1200 in stock A, and invest \$1200 in stock B. She expects her investment to be worth \$3300 at the end of the year. Suppose you have \$1000 to invest in any combination of A, B, and the risk free asset. You expect your investment to be worth \$1200 at the end of the year.,(a) What is the expected return of the market portfolio? What is its variance?,(b) How much should you invest in stock A, stock B, and the risk-free asset, in order to minimize the variance of your portfolio? What is the variance of your portfolio?,(c) Assume CAPM holds, calculate the of stock A.,(d) What is the covariance of stock A with the market portfolio? What is the covariance of the portfolio you constructed in part (b), with the market portfolio?