Exercise 8 (feedback) In a small economy, there are two risky assets A and B and a risk-free asset. Since both risky assets have the same capitalization, their respective weights in the market portfolio are identical: rm 1 2 (FA+B) Moreover, some data can be observed in the market. In particular: rf 10% Im = 18% o = 4% o = 2% OAB = = 1% with obvious notations. (a) Give the general and numerical expressions of om, BA and BB. (b) Give the values given by the C.A.P.M. for A and TB