Question: = 2.2 (8 points points) Explain and, where relevant, demonstrate on a graph the following concepts: (a) (3 points) Capital Market Equilibrium in CAPM (b)

= 2.2 (8 points points) Explain and, where relevant, demonstrate on

= 2.2 (8 points points) Explain and, where relevant, demonstrate on a graph the following concepts: (a) (3 points) Capital Market Equilibrium in CAPM (b) (3 points) Expected return for an arbitrary asset j: r; = PRE + B; (M PRF). (Explain the meaning of beta in this equation). (c) (2 points) Security Market Line RF

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