answer both parts 2. Cincinnati Power, TT Tech., and the Market Index...

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2. Cincinnati Power, TT Tech., and the Market Index have the following historical returns. The risk free rate is 3%, and the market risk premium is 6%. CostPro 6.7% 14% 8% TT.Tech 22% 9% 30% 7% -22% market index 10% 12% 13% 3% -5% 2% -3% Avg Return Std dev Beta 5.54% 6.41% 0.77 9.2% 19.84% 6.6% 7.57% Correlation coefficient between the stock return and the market ret. Covariance (Rs, Rm) .908 913 44.3 A) (10 pts) What is the covariance between TT Tech and the market, and what is the beta of TT Tech? B) (10 points) What is the required rate of return on portfolio consisting of 40% CP and 60% TT. Tech

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