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**Macleef** Efficient Portfolio 1:

E (R1) = 20%

SD1 = 10%

Efficient Portfolio 2:

E (R2) = 40%

SD2 = 30%

Market Portfolio:

E (Rm) = 25%

Security in a Market:

E(Rs) = 20%

SDs = 30%

Find CORREL of its return and market returns (holding all assumptions of CAPM).

How would you solve this problem? I thought using BETA = (CORREL*SD)/SD would be appropriate but I don't know what the beta value is. I also thought using E(R) = Rf + BETA(E(Rm) - Rf) would also work to find BETA, but I don't know the value of riskfree.