Question: 2. (A small world) Consider a world in which there are only two risky assets, A and B. and a risk-free asset F. The two

2. (A small world) Consider a world in which there are only two risky assets, A and B. and a risk-free asset F. The two risky assets are in equal supply in the market, that is, M= {(A + B). The following information is known:rp=10,0 =04.0AB=01,03=.02, and PM = 18. (a) Find a general expression (without substituting values) for omBA, and BB. (b) According to the CAPM, what are the numerical values of FA and FB

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