Thanks for getting back to me so quickly.

But I'm sorry...I still don't completely get it.  Which two stocks should we find the CAPM line for?  All three of the different combinations give you different values for the risk-free rate and the market risk premium.

And then it sounds like we should use the given beta from the third one to find the expected return and compare that to the given expected return for that stock, right?  But when I do that, I just get the same answers that I got in parts A-F.

If you make a CAPM line with #1 and #2 and use the given beta from #3, the expected return is greater than the given expected return.  So does that mean that #3 seems to be the worst portfolio?  (And it's 2 points greater compared with #1 where the line is 1.33 points greater, so #3 is worse than #1.)

Is this reasoning anywhere close to what it is or am I totally confused?