Question: ci. You have been provided the following data on three securities and the market portfolio. Beta 1.5 Observed (Realized) Return 15.0% 12.0% 10.0% 10.0% 5.0%

ci. You have been provided the following data on three securities and the market portfolio. Beta 1.5 Observed (Realized) Return 15.0% 12.0% 10.0% 10.0% 5.0% Security/Portfolio Security 1 Security 2 Security 3 Market portfolio Riskfree security Standard Deviation 01 18.0% 2.0% 4.0% 0.0% Correlation 1.0 0.4 P3, m B2 0.5 Pin, m Bm Pem BE Note that the return in the above table is the average realized return on security j. Assume the CAPM is correct and that the market portfolio and the riskfree security are correctly priced. a) Fill the missing values of the table. Show your calculations where appropriate
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