Can you guys help me out question 7.3) part (a) and (b)
For part (a), We need to find the beta, but i confuse the given equation.

My question has to do with part g of the third exercise for this assignment.

After calculating the CAPM line for portfolio's 1 and 2, I calculated the expected return for portfolio 3 to be 22%. I am assuming that, based on the principles discussed, that this is result is positive for investors holding portfolio 3. There seems to be some confusion about this though.