Question: 3. CAPM as a reference investment strategy Assuming expected return follows the Capital Asset Pricing Model (CAPM), please reconstruct following assets/ investment strategies using two

3. CAPM as a reference investment strategy

Assuming expected return follows the Capital Asset Pricing Model (CAPM), please reconstruct following assets/ investment strategies using two basic assets: T-Bill and S&P500 Index.

(1). An investment with the beta of 1.5;

(2). A portfolio with the beta of 0.5;

can I have more calculation details or reasons? thanks!

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