Finance questions (please answer 1, 2 and 3)

1. According to the CAPM, investors adopt passive strategies in optimizing their portfolios.

Select one: a. True b. False

2. In the CAPM economy, the average position in the risky portfolio would be ____ Select one:

a. 0 b. 1 c. Allocated according to the risk aversion degree. d. Optimized according to the Markowtirz model e. 0.5

3. The Beta of a portfolio with an expected return of 16%, risk free rate of 6% and an expected return of the market of 14% is ______ Select one:

a. 1.86 b. 1 c. 0.8 d. 1.25

3.