$4.$ Using a $3\mathrm{.}0\%$ risk$-$free rate, and a required rate of return on portfolio of $6\mathrm{.}0\%,$ calculate

the required rates of return on each of the alternatives using the Security Market Line equation.

Use the betas given in #$5$

$5.$ The expected rates of return and the beta coefficients of the alternatives as supplied by an

independent analyst are as follows:

Security Return Risk $($beta$)$

High Tech $9\mathrm{.}90\%1\mathrm{.}31$

Market $8\mathrm{.}00\%1\mathrm{.}00$

U$.$S$.$ Rubber $7\mathrm{.}30\%0\mathrm{.}88$

T$-$bills $3\mathrm{.}00\%0\mathrm{.}00$

Collections $1\mathrm{.}20\%(0\mathrm{.}50)$